Google Claims YouTube Terms of Service Authorize AI Music Training for Lyria 3

Summary

Google filed a motion to dismiss copyright infringement litigation from independent artists, songwriters, and producers who claim their music was used to train Lyria 3, the company's AI music generation model launched in February 2026. Rather than relying on fair use arguments like other AI companies in similar lawsuits, Google argues that YouTube's terms of service grant the company a 'broad license' to use uploaded content for AI training and derivative works. The clause in question states that by uploading content to YouTube, users grant Google 'a worldwide, non-exclusive, royalty-free, sublicensable and transferable license to use that content (including to reproduce, distribute, prepare derivative works, display and perform it) in connection with the service.'

The case highlights a structural advantage for Google compared to other AI copyright litigation: the company owns both the AI model and the platform where the training data resides. However, the situation becomes more nuanced for music licensed through separate deals with major record labels and publishers. These companies have independent licensing agreements with YouTube that govern copyright protection and may include AI-specific restrictions. Universal Music Group, for example, negotiated explicit 'guardrails' around Gen AI content in its renewed YouTube licensing deal. The outcome of this case could fundamentally reshape how tech platforms interpret user-uploaded content in their terms of service and what rights they can claim for AI training purposes.

• Major record labels have separate licensing agreements with YouTube that may explicitly restrict AI training on their artists' music