Record Labels Enter Licensing Negotiations with AI Innovators Udio and Suno
Universal Music Group, Warner Music Group, and Sony Music Entertainment are currently in negotiations to license their content to AI ventures Udio and Suno, as reported by Bloomberg. These agreements aim to establish a framework for compensating artists for their contributions.
The record labels are seeking a small equity stake in both Suno and Udio.
Udio and Suno provide aspiring musicians with audio recordings generated from prompts that describe different sounds or songs, such as “a modern country ballad about unrequited love.”
Any potential agreement would also aid in resolving ongoing lawsuits between the music companies and the AI startups. Last year, the labels took legal action against Udio and Suno for copyright violations. Both parties are now in discussions to reach a consensus on terms rather than engaging in prolonged legal disputes.
While the music companies are looking to gain greater control over the use of their intellectual property, the AI startups are advocating for the flexibility to innovate.
