UMG and Udio Partner on Licensed AI Music Platform After Legal Settlement

Universal Music Group and AI music startup Udio have reached a landmark agreement. The deal resolves a major copyright infringement lawsuit filed last year. It also establishes a new collaborative platform for AI-generated music.

This partnership ends legal disputes and creates a licensed framework for the future. According to Billboard, the two companies will work together on a new commercial music experience.

From Courtroom to Collaboration: The Details of the Deal

The lawsuit accused Udio of training its AI on copyrighted recordings. UMG had described the alleged infringement as being on an “almost unimaginable scale.” The new agreement includes a compensatory legal settlement for the music giant.

More importantly, it establishes a licensing model for UMG’s vast catalog. This covers sound recordings, songs, and publishing assets. Participating UMG artists and songwriters will receive payment for AI model training and its outputs.

A New Walled Garden for AI Music Creation

The new subscription service is scheduled to launch in 2026. It will create a protected environment for music customization and sharing. UMG artists and songwriters can choose to opt-in to the program.

Billboard reports the platform will allow user remixes and vocal swaps. However, these creations will be confined within the service. This “walled garden” approach ensures all content is fingerprinted and monitored.

This partnership between UMG and Udio marks a critical shift for the music industry. It moves AI music from a legal battleground to a potential new revenue stream. The success of this licensed AI platform could set a new industry standard.

Thought you’d like to know

What is the new UMG and Udio partnership?

It is a collaboration to create a licensed AI music platform. The deal settles last year’s copyright lawsuit. It aims to launch a new subscription service in 2026.

How are artists compensated in this deal?

Participating UMG artists and songwriters will receive financial compensation. This payment covers both the training of AI models and their outputs. It establishes a new revenue stream from AI technology.

What can users do on the new platform?

Users will be able to create mashups, remixes, and alter tempos of licensed works. They may also swap vocals with opt-in UMG artists. All creations can only be listened to within the platform itself.

What was the original lawsuit about?

UMG and other major labels sued Udio for mass copyright infringement. The suit alleged Udio trained its AI models on copyrighted recordings without permission. The new agreement resolves these claims.

When does the new service launch?

The collaborative AI music platform is scheduled to launch in 2026. Until then, songs made with Udio’s current model will be controlled within a restricted environment. The full commercial experience is still in development.