Universal and Warner Seek Dismissal of Musicians’ AI Licensing Lawsuit

Universal Music Group and Warner Records have filed a motion to dismiss a lawsuit brought by the American Federation of Musicians (AFM) over AI-related licensing practices.

The AFM is currently engaged in legal proceedings against UMG and Warner Records, contending that recordings featuring its members were licensed to AI companies Suno and Udio without the musicians being compensated or adequately informed.

The core of the dispute centers on whether AI licensing constitutes a “new use” of recordings under the terms of the AFM’s Sound Recording Labor Agreement (SRLA).

According to the “new use” clause, when a record company employs a sound recording in a manner not previously anticipated or covered by the SRLA, the label is obligated to compensate the musicians featured on that recording and to notify the union.

Major labels have not applied this clause to music used by AI software, arguing that the language does not specifically address AI applications.

The labels maintain that their interpretation is the only reasonable one and are urging the court to dismiss the AFM’s case.

“Article 21(a) does not establish a rate,” UMG’s attorneys wrote, per Music Business Worldwide. “It draws one from a separate AFM agreement governing the new purpose.”

“And AFM has conceded that no such agreement exists for AI use.”

The UMG filing references a pre-motion conference held on July 21, during which US District Judge Edgardo Ramos questioned whether any such agreement covers AI technology.

“No. So, there is no underlying agreement for AI use. We conceded that,” the union’s counsel, Eyad Asad, responded, according to a transcript quoted in the filing.

“That concession ends this case,” UMG’s lawyers wrote. “Discovery cannot alter that fact, much less give rise to the missing agreement.

“An obligation to pay that is grounded in a nonexistent agreement is no obligation to pay at all.”

Last year, Warner and fellow major labels Sony Music Entertainment and Universal Music Group filed lawsuits against Suno and another AI company, Udio, alleging copyright violations of “an almost unimaginable scale.”

However, Warner subsequently entered into a new licensing agreement with Suno, settling the lawsuit through a deal reportedly designed to integrate a licensed model into Suno’s platform, enabling users to pay to download AI-generated songs.

According to Pitchfork, the agreement ensures that artists and songwriters who opt into AI deals with Warner and Suno will receive fair compensation and retain “full control” over their music, likeness, and other copyright details, while also maintaining oversight over how their likeness is used by AI.

The case ultimately hinges on one of the most significant issues in AI music creation: where the training material originates and how artists can be properly compensated.

Earlier this month, artists including Jason Isbell filed a lawsuit against Suno, alleging that the software enables users to replicate an artist’s identity and musical style without consent.

Last month, Suno lost a copyright infringement case to German licensing agency GEMA, which argued that Suno had used songs from its repertoire—including Boney M’s “Daddy Cool,” Lou Bega’s “Mambo No. 5,” and Alphaville’s “Forever Young”—to train its AI models without securing licenses or paying songwriters.

That ruling also requires other AI companies to obtain licenses for any music from GEMA’s repertoire going forward.

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