Major Record Labels in Licensing Talks With AI Music Startups Udio and Suno to Settle Copyright Disputes

According to a recent Bloomberg report, major record labels Universal Music Group, Warner Music Group, and Sony Music Entertainment are engaged in licensing negotiations with AI startups Udio and Suno. The deals being discussed would establish a framework for compensating artists whose work is used by these AI platforms. One of the key demands from the record labels is a small stake in both Udio and Suno. These startups offer aspiring musicians the ability to create audio recordings through simple text prompts, such as "a modern country ballad about unrequited love." The talks are partly aimed at resolving ongoing lawsuits filed by the record labels against the AI firms last year. The labels accused Udio and Suno of copyright infringement, and both parties are now exploring whether they can reach mutually beneficial terms rather than prolonging the legal battles. At the heart of these discussions is the issue of control over the use of copyrighted material. The record labels are seeking greater oversight and financial compensation, while the AI startups aim to maintain the flexibility needed for experimentation and innovation in their field. A successful agreement could provide a model for how the music industry and AI technologies can coexist and collaborate moving forward.