Musicians Union Sues UMG, Warner Over AI Training Settlements

Labels Accused of Excluding Artists from AI Deals

The American Federation of Musicians has filed a federal lawsuit against Universal Music Group and Warner Music Group, alleging the record labels settled copyright disputes with AI music generators while excluding the musicians whose recordings were used to train those systems from any compensation.

According to the complaint filed Friday, UMG and WMG reached settlements with AI companies Suno and Udio in late 2024 that included both retrospective payments for past copyright violations and prospective licensing agreements. The union argues these deals generated "a significant source of new revenue" for the labels without any corresponding payments flowing to the artists who created the underlying recordings.

The Settlement Timeline

UMG announced its settlement and partnership with Udio in October 2025, followed by WMG's own Udio deal in mid-November. WMG subsequently became the first major label to settle with Suno weeks later. Sony Music Group, the third member of the "big three" record companies, has not settled with either AI platform.

The original lawsuits, filed by all three major labels in 2024, accused Suno and Udio of massive copyright infringement for training their generative models on thousands of copyrighted songs without authorization or payment.

Why It Matters

This lawsuit exposes a fundamental tension in how AI training compensation flows through the music industry. Even when copyright holders secure settlements for unauthorized use of their catalogs, the structure of recording contracts may leave performing artists—whose actual performances fed the AI systems—without any share of that revenue. The case could establish important precedents for how AI licensing deals must account for artist rights, particularly as AI music platforms like Suno attract billions in venture funding.

Union's Core Allegations

The AFM's complaint states that UMG and WMG "are allowing those same AI companies to use the work of AFM-represented musicians to do exactly what they warned about: Training AI models to generate supposedly 'new' sound recordings derived from music ingested into their models."

The union further alleges the labels received substantial compensation for past violations and licensed portions of their catalogs for both retroactive and ongoing AI training purposes, creating continuing revenue streams. Despite what the AFM characterized as "self-congratulatory claims of protecting" artists, the labels have "failed to share in the settlement proceeds and future revenue" with musicians whose performances were incorporated into the AI models.

Neither UMG nor WMG responded to requests for comment, according to The Hollywood Reporter, which first reported the lawsuit.

Industry Context

AI music generation remains contentious across the industry as stakeholders debate adoption strategies that balance innovation against copyright protection. The question of how musicians receive compensation when their work trains AI systems remains largely unresolved.

Meanwhile, AI music platforms continue attracting major investment despite controversy. Suno announced earlier this week it closed a $400 million funding round valuing the company at $5.4 billion.

Details of the lawsuit were first reported by The Hollywood Reporter.