Udio Signs New AI Licensing Agreement with Merlin

Udio, the prominent generative AI music company, has struck a deal with Merlin, the licensor of thousands of independent labels and distributors. This is the first major agreement Udio has struck that will allow independent entities to earn royalties from AI training on the platform.

The details:

• Udio has confirmed this deal will allow artists, labels, and distributors under the Merlin umbrella to “opt-in.”

• According to Billboard, Udio did not provide information on the payment structure for those who opt-in.

• Udio also did not share whether Merlin clients would receive backpay for tracks that were already used for training purposes without permission.

Background:

• Udio has signed similar deals with Universal Music Group (UMG) and Warner Music Group (WMG).

• Prior to those deals being struck, all three major labels were suing Udio for copyright infringement, claiming the AI company used their owned works to train AI without permission.

• The deals in question effectively ended WMG and UMG’s involvement in the lawsuit. Sony’s lawsuit is still active.

• UMG’s deal with Udio saw the latter make major changes to its platform. There is no word on whether the Merlin deal will lead to similar changes.

• Merlin recently signed a significant licensing deal with another AI company, ElevenLabs.

What they said:

• Charlie Lexton, CEO of Merlin: “As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music. For some time, Merlin and Udio have been engaged in conversations focused on a foundation of consent and fair remuneration. We are excited by Udio’s vision and how they clearly respect and value our members and their artists.”