The Legal Beat: UMG Settles Copyright Case With A.I. CompanyOn October 26, 2025, Universal Music Group announced it had settled a copyright case with A.I. music company Udio. The copyright infringement lawsuit was filed last year by UMG, Sony Music, Warner Music Group, and the Recording Industry Association of America (RIAA) against Udio and another A.I. company, Suno. The plaintiffs contend that A.I. companies are subject to copyright law the same as all other companies.

The plaintiffs alleged that hundreds of songs by top artists were copied. This lawsuit is one of several high-profile ones brought by copyright holders against A.I. companies for using their work.

The lawsuit was filed last year and UMG claimed that Udio committed copyright infringement on a “almost unimaginable scale” by using UMG’s recordings to train it’s A.I. models. The plaintiffs were seeking “an injunction and damages commensurate with the scope of Udio’s massive and ongoing infringement.” 

The UMG lawsuit only concerned sound recordings. However, the settlement covers music publishing as well. When the new platform launches in 2026, UMG artists and songwriters will have the chance to “opt in” and receive financial compensation for the training of A.I. model as well as its outputs.

UMG’s press release indicates: “The new subscription service will transform the user engagement experience, creating a licensed and protected environment to customize, stream, and share music responsibly on the Udio platform.”

UMG’s new platform will, for instance, allow users to create new mashups and remixes to existing licensed music. The two companies will launch the new platform next year. The settlement also includes monetary compensation for UMG, which has not been disclosed. In litigation, it is typical for a monetary settlement to be kept confidential.

Andrew Sanchez, the CEO of Udio, stated: “This moment brings to life everything we’ve been building toward—uniting A.I. 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.”

Sir Lucien Grange, the Chairman of UMG, stated the settlement provisions “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.”

Not many more details of the settlement are available. This settlement would seem to undermine some A.I. companies’ hopes that they could use licensed music without restriction or compensation.

UMG has also entered into agreements with what it calls “responsible” A.I.companies such as Soundlab and Klay. Warner and Sony Music are still pursuing their lawsuits against Udio and Suno.

GLENN LITWAK is a veteran entertainment attorney based in Santa Monica, CA. He has represented platinum selling recording artists, GRAMMY-winning music producers, hit songwriters, management and production companies, music publishers and independent record labels. Litwak is also a frequent speaker at music industry conferences around the country, such as South by Southwest and the Billboard Music in Film and TV Conference. Litwak has been selected as a “Super Lawyer” by Super Lawyer magazine for 2022-2025. Email Litwak at gtllaw59@gmail.com or visit glennlitwak.com.

This article is a very brief overview of the subject matter and does not constitute legal advice.The post The Legal Beat: UMG Settles Copyright Case With A.I. Company first appeared on Music Connection Magazine.