AFM Amends AI Licensing Lawsuit Against UMG and Warner, Targets Record Labels

The American Federation of Musicians has amended its complaint against Universal Music Group and Warner Music, replacing Warner Music Group Corp. with its record labels in a dispute over the licensing of recordings to AI platforms Suno and Udio.
American Federation of Musicians president Tino Gagliardi speaking at a podium, with the union's logo visible in the background. American Federation of Musicians president Tino Gagliardi speaking at a podium, with the union's logo visible in the background.

The American Federation of Musicians (AFM) has amended its lawsuit against Universal Music Group (UMG) and Warner Music over the licensing of musicians’ recordings to AI music platforms Suno and Udio. The revised filing, submitted less than two months after the union’s initial legal action, narrows the Warner defendants to Warner Records and Atlantic Records.

The dispute centres on whether the licensing agreements constitute a “new use” of recordings under the Sound Recording Labor Agreement (SRLA). The AFM argues that the deals with Suno and Udio represent a new commercial application, entitling the musicians who performed on the tracks to additional compensation.

Defendants narrowed to label entities

The original complaint named Warner Music Group Corp. as a defendant. Warner argued that its parent company is not a signatory to the SRLA, does not own copyrights, and was not a party to the copyright infringement lawsuits against Suno and Udio. The amended filing replaces Warner Music Group Corp. with Warner Records and Atlantic Records, the label entities that are signatories to the agreement.

“But Warner Music Group Corp. is not a signatory to the SRLA, does not itself own copyrights, was not a plaintiff in the copyright infringement lawsuits against Suno and Udio, and thus does not have licences with Suno or Udio,” Warner Music previously stated. “To the extent AFM seeks to assert a breach of contract, it is not against Warner Music Group Corp.”

Union points to Udio’s Starstruck service

The amended complaint also references Udio’s planned Starstruck service as evidence that the licensing arrangements could involve a new commercial use of musicians’ performances. According to the filing, the service requires users to select a specific artist and recording before generating outputs, and the resulting recordings are owned by the participating rights holders rather than the user. The AFM contends that such activity “goes beyond the uses contemplated” when the original recordings were made.

The union is seeking details of the licensing agreements, arguing that UMG and Warner Music have not provided information required under the SRLA. That data, the AFM says, is necessary to calculate the compensation owed to musicians. The complaint also seeks damages.

Wider legal context and next steps

The case is part of a broader set of legal disputes over the use of copyrighted music and recorded performances to train and operate generative AI systems. Sony Music remains in separate litigation with Suno and Udio, while UMG and Warner Music have entered into licensing agreements with the AI companies.

A judge has set deadlines for motions to dismiss through mid-September. The outcome could influence how musicians are compensated when existing recordings are licensed for emerging AI applications and may clarify the scope of the agreements between major music companies and AI developers.

Previous Post
Universal Music Group logo displayed on a digital screen with stock market trading data in the background.

Universal Music Group Completes €500 Million Share Buyback

Next Post
A street sign reading 'ODB Jones Way' at the corner of Putnam and Franklin Avenues in Brooklyn, next to a mural of Ol' Dirty Bastard.

Brooklyn Street Renamed ODB Jones Way for Ol' Dirty Bastard