Universal Music Group and the AI music generation platform Udio have announced a settlement in their copyright infringement lawsuit, which involves a commitment to collaborate on developing new music creation and streaming technologies. The two companies revealed the details of the agreement in a joint statement on Wednesday.
As part of the settlement, Udio will cease the functionality that allowed users to download songs they generated, a move that led to a significant backlash among its paying subscribers. Both Udio and Universal stated that they have also formalized new licensing agreements concerning recorded music and publishing, aiming to create additional revenue opportunities for the artists and songwriters associated with Universal.
This notable settlement marks the first resolution since Universal, alongside other major labels like Sony Music and Warner Records, filed a lawsuit against Udio and another AI song generator, Suno, last year, citing copyright infringements. The financial specifics of the settlement remain undisclosed.
In light of this agreement, Universal CEO Lucian Grainge emphasized the company’s dedication to supporting their artists and songwriters through the integration of new technologies and the expansion of revenue avenues. He stated, “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.”
The intersection of AI technology and copyright law remains a hot topic in the music industry. Notable artists like Paul McCartney and Elton John have previously raised concerns over the implications of AI on artistic integrity and the risks of unregulated content utilization without artists’ consent. The Udio-Universal deal could set a precedent for how artists can benefit from technological innovations while protecting their rights.
As the industry navigates these complex challenges, there is potential for a positive outcome, provided that ongoing discussions and agreements focus on both encouraging innovation and safeguarding creative rights. The collaboration between Universal and Udio could lead to pioneering developments in music creation that align with the interests of artists.

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