The American Federation of Musicians (AFM) has initiated a lawsuit against two major music labels, Universal Music Group (UMG) and Warner Music Group (WMG), over the licensing of sound recordings featuring AFM members' work to AI music companies.

The lawsuit, filed on June 5, alleges that the labels have licensed sound recordings featuring AFM members' work to AI music companies Suno and Udio without proper compensation or credit, and have refused to disclose which recordings and musicians' work are being licensed.

The $30 million toe in the water

The lawsuit argues that this practice violates the collective bargaining agreement,which requires compensation for 'new uses' of musicians' work. AFM also seeks information on the specific recordings being fed into Suno and Udio's training sets, but the labels have not provided this information.

UMG and WMG agreed to license popular music AI models to be trained on their works, with Udio's model remaining within a 'walled garden' on its platform, and WMG's model allowing off-platform distribution.

Why 4,000 unsold units became the prize

The AFM lawsuit comes after the labels reached settlements with Udio and Suno in 2024, following accusations that both AI models were illegally trained on millions of copyrighted recordings.

The lawsuit also raises questions about the impact of AI music on the music industry and the rights of musicians. AFM is seeking compensation for the use of their members' work in AI music and transparency about which recordings are being used.

An echo of Sydney's 2024 institutional buy-up

Meanwhile, UMG continues to sue Suno, and Sony has not settled with either company, as both AI platforms are developing new models based on licensed music.

The lawsuit is a significant development in the ongoing debate about the use of AI music and the rights of musicians.. AFM is seeking to protect the interests of its members and ensure that they receive fair compensation for their work.

Who is the unnamed buyer?

The lawsuit also raises questions about the identity of the unnamed buyer who has been purchasing AI music licenses from UMG and WMG.

AFM is seeking information about the buyer's identity and the terms of the license agreements.

Open questions

The lawsuit raises several open questions about the use of AI music and the rights of musicians. for example, what is the extent of the licenses granted by UMG and WMG to Suno and Udio? What specific recordings are being used in the AI music models? And what is the impact of AI music on the music industry and the rights of musicians?