Musicians’ Union Files Suit Against Major Labels Regarding AI Settlements

The American Federation of Musicians has initiated legal action against Warner Music Group and Universal Music Group, contending that musicians are not receiving compensation from settlements with AI music companies.

The American Federation of Musicians (AFM) has filed a lawsuit against Warner Music Group (WMG) and Universal Music Group (UMG), asserting that financial benefits from recent agreements with AI music generators Suno and Udio have not been distributed to musicians.

UMG reached a settlement in its AI-related lawsuit with Udio in October 2025 and subsequently announced the formation of a new joint venture with the company.

WMG settled with Suno in November 2025 and established a partnership with the AI organization.

WMG, UMG, and Sony Music Group initially filed a lawsuit against Suno and Udio in 2024, alleging unauthorized use of copyrighted songs in the training of their AI music generators.

The AFM alleges that UMG and WMG have “failed and refused to provide compensation to musicians for the AI exploitation of recordings on which they worked or performed.”

The AFM states that its Sound Recording Labor Agreement (SRLA) with the major labels requires compensation for musicians whose contributions are included in recordings subject to “new use” as defined in Article 21 of the agreement.

A UMG representative stated that the AFM initiated the legal action during collective bargaining negotiations and that the company intends to continue resolving issues through these negotiations, as has been done previously, and expects to maintain a positive working relationship with the AFM.

A WMG representative expressed disappointment with the AFM’s legal action, characterizing it as unproductive given ongoing negotiations, and stated that WMG looks forward to continuing those negotiations as planned.

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