Warner Music and AI startup Udio settle copyright battle and ink license deal

By KELVIN CHAN
AP Business Writer

LONDON (AP) — Warner Music Group resolved its copyright battle with Udio and signed a deal to work with the AI music startup on a new song creation service that will allow users to remix tunes by established artists.

It’s the second agreement between a major record label and Udio, a chatbot-style song generation tool.

The deals underline how AI is shaking up the music industry. AI-generated music has been flooding streaming services amid the rise of song generators that instantly spit out new tunes based on prompts typed in by users without any musical knowledge. The synthetic music boom has also resulted in a wave of AI singers and bands that have climbed the charts after racking up millions of streams, even though they don’t exist in real life.

Warner, which represents artists including Ed Sheeran and Dua Lipa, has resolved its copyright infringement litigation against Udio, the two companies said. They’ve also established ”a clear framework” for developing Udio’s licensed AI music creation service that’s set to launch in 2026.

They provided no financial details on their agreement, which includes Warner’s recording and publishing businesses, but it will create “new revenue streams for artists and songwriters, while ensuring their work remains protected.”

It’s similar to an agreement that Universal Music Group signed last month with Udio, which triggered a huge backlash because Udio stopped users from downloading the songs they created.

Udio said it will remain a “closed-system” as it prepares to launch the new service next year. If artists and songwriters choose to let their works be used, they’ll be credited and paid when users remix or cover their songs, or make new tunes with their voices and compositions, the companies said.

Sony Music Entertainment remains the only major record company that hasn’t yet signed an AI licensing deal with Udio or Suno, after filing suit against them last year over copyright alongside Universal and Warner. Suno hasn’t yet signed a deal with any major label.

Also Wednesday, Warner unveiled a deal to work with another artificial intelligence company, Stability AI, on developing “professional-grade tools” for musicians, songwriters and producers.