AI Startups: Music Labels Push for Licensing Deals With Suno, Udio

Major record labels are reportedly in talks with AI music startups Suno and Udio to set up licensing agreements for songs used to train their generative artificial intelligence (AI) models — and how artists are compensated for subsequent remixes.

According to The Wall Street Journal, Universal Music Group, Warner Music Group and Sony Music Group want the startups to pay when music by artists they represent — such as Taylor Swift, Ed Sheeran and Drake — is used in AI-generated compositions.

The recording companies also want the startups to develop “fingerprinting and attribution” systems, similar to YouTube’s Content ID, that could identify when copyrighted material is being incorporated into AI outputs.

These technologies would enable compensation for the use of artists’ songs and voices, creating a foundation for royalties or revenue sharing.

The labels also want a say in how these AI tools are deployed commercially: They want to be involved in decisions about which AI music products are developed and how they work.

Read more: Amazon and Universal Music Tackle ‘Unlawful’ AI-Generated Content

The talks come amid growing industry-wide concern over the impact of generative AI on creative rights.

Some publishers and studios have turned to lawsuits, while others, like music labels and news outlets, are exploring how to turn AI alliances into a revenue stream while safeguarding their intellectual property.

Last year, the Recording Industry Association of America sued both Suno and Udio, alleging copyright infringement. The artificial intelligence firms argued that their models learn musical styles rather than memorize songs, and that they include safeguards to prevent copyright violations.

See also: AI-Generated Music Sparks Copyright Battle in Music Industry

The Journal said the recent firing of U.S. Copyright Office Director Shira Perlmutter raised anxiety in the industry about whether the government will side with tech companies on AI copyright issues.

Each label is negotiating separately with the two startups but a hurdle is to reach terms that will get broad support from musicians.

Music companies are also expected to take equity stakes in Suno and Udio – an approach they’ve used in the past with startups like Spotify.

Read more: AI Composers Turn Algorithms Into Music

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