Major record labels, including Universal Music Group, Sony Music Entertainment, and Warner Music Group, are now in licensing discussions with AI music generators Suno and Udio—the very firms they sued last year for massive copyright infringement—as first reported by Bloomberg. The talks aim to establish compensation for using their catalogs as AI training data, potentially settling the high-stakes lawsuits.
Pay to play: The core of these negotiations revolves around creating a framework where Suno and Udio would pay for access to the labels' music. Reports suggest the labels are not only seeking licensing fees but also a minority ownership share in the AI companies, a deal that could resolve legal battles potentially worth billions.
Tech on a leash: Beyond financial terms, the music giants are reportedly insisting the AI firms develop robust systems for identifying and tracking music, akin to YouTube's Content ID, to monitor copyrighted content within AI-generated outputs. The Wall Street Journal also detailed that labels want to actively participate in shaping the AI companies' product roadmaps and how these new music creation tools operate.
Same old song?: This move by the majors, negotiating individually with the AI firms, mirrors how the music industry has historically confronted and eventually partnered with disruptive technologies. However, it also raises questions about the common tech tactic of launching first and asking for permission later, a sore point for "ethical" AI companies who proactively licensed music and now fear being disadvantaged.
The bottom line: If these deals materialize, it could signal a pragmatic, if somewhat controversial, path for legacy media industries to engage with generative AI, potentially establishing new revenue streams while attempting to exert control over how their content fuels AI development.
Reading Recap:
- Bloomberg first breaks news of the label-AI talks
- Suno details its latest AI song editor upgrades
- Ethical AI firms react to majors' potential deals
- Context on last year's major label lawsuits against Suno and Udio
- WSJ reports on label demands for Content ID-style tech
Spinning elsewhere: While US labels talk deals, prominent UK artists like Brian May and Jimmy Page are fighting proposed UK AI copyright law changes. Separately, Suno faces another copyright infringement suit in Germany.