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AFM AI licensing lawsuit and industry shift to licensing

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2026-08-06 20:23 UTC → 2026-08-28 04:02 UTC · added removed

AFM AI licensing lawsuit against major labels and industry shift to licensing

In July 2026 Warner Music Group asked a New York federal court to dismiss the AFM breach‑of‑contract suit over AI‑driven licensing agreements with Suno and Udio, arguing the 2023 Sound Recording Labor Agreement (SRLA) does not cover AI licenses, that Warner is not a signatory, and that it does not own the copyrights. The union countered that Article 21(a) of the SRLA obligates compensation for recordings used to train generative‑AI systems, citing past “new‑use” precedents such as video‑game licensing. A week later the AFM petitioned the same court to allow its case against both Warner and Universal Music Group to proceed, maintaining that the “new‑use” provision applies to AI. Both labels contended the clause only triggers when a pre‑existing rate exists, thus excluding AI. In early August 2026, Universal Music Group (UMG) filed its own a motion to dismiss the AFM claim, reiterating that the SRLA Sound Recording Labor Agreement (SRLA) does not encompass AI licensing and seeking dismissal under Rule 12(b)(6). The filing underscored By late August, the industry’s broader effort to define AI‑related royalty obligations. Separately, Universal and Sony Music Group initiated coordinated landscape shifted as UMG transitioned from legal action in Canada against Musi, disputes toward a licensing-based business model. Following a settlement with the AI music platform Udio, UMG and Udio reached an app that streams copyrighted agreement covering both musical recordings from YouTube without permission, alleging circumvention and publishing. As part of technical protections. The Musi case this settlement, Udio is unrelated expected to the AFM dispute but reflects parallel attempts by the music launch a subscription-based platform in 2026 featuring fingerprinting and filtering tools to maintain a protected, licensed environment. Other industry players, including Warner Music and Merlin, have joined similar licensing movements, though Sony Music has not yet participated in these specific deals. Additionally, UMG has expanded its influence through its joint venture, Liquidax Capital, which established Music IP Holdings (MIH) in Nashville. MIH focuses on licensing patents related to protect revenue from emerging digital platforms. AI music and, as of August 2026, claims to hold over twenty active patents with approximately fifty more under examination.

Versions

  1. 2026-08-28 04:02 UTC AFM AI licensing lawsuit and industry shift to licensing
  2. 2026-08-06 20:23 UTC AFM AI licensing lawsuit against major labels

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