UMG and Udio Settle Lawsuit, Announce New Co-Venture

Universal Music Group (UMG) has announced another significant development in its relationship with AI. The major label has settled its lawsuit against the prominent AI music creation company, Udio, and simultaneously announced the two entities will partner on “an innovative, new commercial music creation, consumption, and streaming experience.”

UMG X Udio

• The new program from the two companies will operate within the Udio platform and launch in 2026.

• UMG has said it will be a subscription service, and that it will use “cutting-edge” generative AI technology built on licensed music.

• As part of the settlement, Udio will implement new licensing agreements for publishing and recorded music from UMG artists, opening new revenue streams.

Background:

• UMG, Sony Music Entertainment, and Warner Music Group jointly sued Udio for copyright infringement last year.

• This update marks the end of UMG’s involvement in the lawsuit.

• No updates have been made by the other two labels as of this writing.

• UMG has entered into previous AI agreements with Spotify, YouTube, TikTok, Meta, KDDI, KLAY Vision, BandLab, Soundlabs, and Pro-Rata.

What they said:

• Sir Lucian Grainge, Chairman and CEO of UMG: “These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams, or beyond.”

• Andrew Sanchez, Co-Founder & CEO of Udio: “This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists. Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”