Musicians Sue Over Unpaid AI Settlement Royalties from Suno, Udio Deals
Key Takeaways
- ▸AFM alleges UMG and WMG received substantial compensation from AI company settlements but withheld payments from 70,000 member musicians
- ▸The lawsuit claims settlements fall under "new use" provisions requiring compensation when music is repurposed for AI training
- ▸Both Suno and Udio have modified their platforms to include licensed and opt-in models, but the AFM dispute centers on past usage and compensation
Summary
The American Federation of Musicians (AFM), representing 70,000 musicians, has filed a lawsuit against Universal Music Group and Warner Music Group alleging that the labels received substantial compensation from AI music companies Suno and Udio but failed to share those payments with musicians whose copyrighted work was used to train the AI models. The AFM argues that the settlements and licensing agreements violate "new use" provisions in collective bargaining agreements that require music companies to compensate musicians when their work is used in new ways.
The underlying disputes stem from 2024 lawsuits filed by UMG and WMG against Suno and Udio for copyright infringement. UMG settled with Udio, while WMG announced a partnership with Suno in November 2025. UMG's lawsuit against Suno remains pending. The AI companies have since made changes—Udio created a new platform allowing artists to opt-in, while Suno launched licensed models with download restrictions—but the AFM contends these steps don't address the unpaid compensation owed to musicians for past usage.
Both record labels claim they are in active negotiations with the AFM and have emphasized their commitment to protecting artists' rights and building a responsible AI ecosystem.
- Record labels say they're negotiating with AFM, while AI companies emphasize their commitment to artist compensation going forward
