Universal strikes AI truce with Udio in landmark music deal

Universal Music has reached a Universal Music AI settlement with the song-generation company Udio and will now work with it on a licensed platform that allows AI music to be created without cutting artists and songwriters out of the revenue.

The agreement brings to an end a copyright dispute over AI tracks that sounded close to well known recordings. It also marks one of the first times a major music group has chosen to regulate, rather than block, an AI tool that can imitate the style of famous performers.

In a joint announcement the two sides said they had reached a compensatory legal settlement and had agreed new licences for both recordings and publishing. Financial details were not disclosed. Universal said the arrangement would “do what is right” for the artists and writers whose work trained the software.

One music executive involved in the talks said the aim was to stop AI companies “copying first and asking later” and to move to a model where artists can choose what is done with their catalogues.

What changes for artists

Under the revised partnership, Universal acts will be able to say whether their work can be used inside the AI platform. Those who opt in will be paid. Udio’s chief executive said artists would have “permission controls” so that music in a distinctive style could be created only where the rights holder allows it.

The companies also said that AI music generated inside Udio would not be downloadable and would instead sit in a controlled space while the new service is built. That is intended to prevent AI tracks leaking out into streaming services and competing with original recordings.

A new AI music tool is coming

Universal and Udio plan to launch a full AI music creation platform in 2026. It is expected to include remixing and mash-up tools for fans, along with ways to create new pieces influenced by well known songs. This is designed to capture the huge volume of AI music already being made every day and to bring it into a legal, licensed environment.

The settlement comes at a time when streaming platforms and labels are trying to filter out low quality AI tracks and protect royalty income. Daily uploads of AI music now run into tens of thousands. Guidance on how copyright applies to AI-generated material can be found in the underlined official UK advice on artificial intelligence and intellectual property.

Universal’s move is likely to put pressure on other AI music start-ups to strike similar licensing deals. It also gives the label a stronger hand in future disputes after several high profile songs were found to be eerily close to classic hits.

For more stories on how technology is reshaping music and media, follow EyeOnLondon for informed and independent reporting.

[Image Credit | The New Yorker]

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