AI Music Startups Suno and Udio Face Copyright Battles with Music Industry

Negotiations continue as AI companies seek licensing deals to avoid lawsuits over use of copyrighted music

Feb. 26, 2026 at 4:54am

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AI music startups Suno and Udio are engaged in legal battles and negotiations with major record labels over the use of copyrighted music in their AI-generated songs. After facing lawsuits from Sony, Universal, and Warner, the companies have reached some settlements but remain locked in disputes over licensing and protecting artists' intellectual property rights.

Why it matters

The outcome of these negotiations will shape the future of AI-generated music and its relationship with the traditional music industry. Artists are concerned that AI companies are exploiting their work without consent or compensation, while the tech firms argue that collaboration is necessary to bring AI music to the mainstream.

The details

Suno and Udio have developed AI systems that can generate original music by inputting descriptors. However, major record labels have sued the companies for copyright infringement, alleging unauthorized use of their artists' work. Udio has reached settlements with Warner, Universal, and independent label Merlin, but Suno remains in legal battles with Universal and Sony. The companies argue that working with the music industry is the only way forward, while artists like Tift Merritt say the 'economy of AI music' is built on exploiting intellectual property without transparency or payment.

  • In 2024, Sony, Universal, and Warner filed copyright infringement lawsuits against Suno and Udio.
  • In November 2025, Suno settled with Warner Music Group.
  • Udio reached settlements with Warner Music Group and Universal Music Group, as well as independent label Merlin.

The players

Suno

An artificial intelligence startup attempting to bridge the gap between technological innovation and the music industry.

Udio

An AI company that is also engaged in negotiations with the music industry over licensing agreements.

Mikey Shulman

The CEO of Suno.

Andrew Sanchez

The CEO of Udio.

Tift Merritt

A singer-songwriter and co-chair of the Artists Rights Alliance, a leading voice of opposition against AI companies' use of copyrighted music without consent or payment.

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What they’re saying

“We have always thought that working together with the music industry instead of against the music industry is the only way that this works. Music is so culturally important that it doesn't make sense to have an AI world and a non-AI world of music.”

— Mikey Shulman, CEO, Suno

“Having a close relationship with the music industry is elemental to us. Users really want to have an anchor to their favorite artists. They want to have an anchor to their favorite songs.”

— Andrew Sanchez, CEO, Udio

“The economy of AI music is built totally on the intellectual property, globally, of musicians everywhere without transparency, consent, or payment. So, I know they value their intellectual property, but ours has been consumed in order to replace us.”

— Tift Merritt, Co-chair, Artists Rights Alliance

What’s next

The negotiations between AI companies and record labels are ongoing, and the outcome will likely shape the future of music creation and consumption.

The takeaway

The battle between AI music startups and the traditional music industry highlights the complex issues surrounding intellectual property, creativity, and the role of technology in the evolving music landscape. Finding the right balance between innovation and protecting artists' rights will be crucial in determining how AI-generated music is integrated into the industry.