American Federation of Musicians fights AI licensing lawsuit against Universal and Warner

The American Federation of Musicians (AFM) has asked a New York federal court to let its lawsuit against Universal Music Group and Warner Music proceed. The union alleges that the labels’ AI licensing agreements with Suno and Udio trigger the “new use” provision (Article 21(a)) of its Sound Recording Labor Agreement, which should require compensation for musicians whose recordings are used to train generative‑AI systems.

Universal and Warner argue that Article 21(a) applies only when a pre‑existing rate is set and does not cover AI, seeking to dismiss the case. The AFM counters that the clause is ambiguous, covers all “new uses,” and cites past practice, stating, “Past practice confirms this: For example, when companies first licensed music for video games, no AFM agreement had set a rate for that use, yet the parties treated it as a new use for both notification and payment purposes.” The union urges the court to reject the dismissal bids.