The American Federation of Musicians has sued Universal Music Group and Warner Music Group, claiming the two companies licensed recordings made by its members to AI music firms Suno and Udio without paying or crediting the musicians who played on them.
The lawsuit was filed on Friday (June 5) in the US District Court for the Southern District of New York.
It centers on the settlements and licensing deals that UMG and WMG struck with the two AI music generators, which the union says triggered the “new use” provision of its collective bargaining agreement, according to the complaint, which you can read here.
That provision, the AFM contends, requires the major labels to compensate its members when their recorded work is put to a new commercial use.
“The AFM brings this lawsuit because defendants, two of the largest music companies in the world, have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit, to two AI companies,” reads the complaint.
“At the same time, they have refused to provide information to the AFM about which recordings and whose work is being licensed.”
“The AFM brings this lawsuit because defendants, two of the largest music companies in the world, have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit, to two AI companies.”
American Federation of Musicians’ complaint
The union is represented by attorney Eyad Asad of Cohen, Weiss and Simon, and is seeking unspecified monetary damages alongside an order requiring the labels to disclose which recordings were fed into the AI training sets.
Both majors settled their copyright lawsuits against Udio at the end of 2025 — and WMG also settled with Suno — agreeing to license their catalogs for new AI models the companies plan to launch this year.
The AFM argues that those deals generated money for the labels but not for the session musicians whose performances were used.
“While the Defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, they have refused to compensate the musicians whose work – created with their own instruments and through their talent, creativity, and hard work – is fed into AI machines for profit,” the AFM said in the complaint.
The union says the labels are “allowing those same AI companies to use the work of AFM-represented musicians to do exactly what they warned about: Training AI models to generate supposedly ‘new’ sound recordings derived from music ingested into their models.”
“While the Defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, they have refused to compensate the musicians whose work – created with their own instruments and through their talent, creativity, and hard work – is fed into AI machines for profit.”
American Federation of Musicians’ complaint
According to the complaint, UMG and WMG “licensed substantial portions of their music catalogs to the AI companies to train their models on both a retroactive and prospective basis, and will earn further revenue on an ongoing basis from the AI companies.”
“Defendants have failed to share in the settlement proceeds and future revenue with those same artists whose music was copied, used for training, and incorporated into the development of the AI models and platforms now being commercially exploited as a new use of the performances embodied in those recordings, despite their self-congratulatory claims of protecting those same artists,” the AFM said.
The three major record companies – UMG, WMG and Sony Music – first sued Suno and Udio in 2024, in a case coordinated by the RIAA that alleged “mass infringement” of copyright.
Universal Music Group settled with Udio in late October 2025, announcing a compensatory settlement plus license agreements for a new AI music platform set to launch in 2026.
Warner Music Group reached its own settlement and licensing deal with Udio in mid-November 2025.
Days later, WMG became the first major label to settle with Suno, in a deal that also saw the AI company acquire concert-discovery platform Songkick from Warner.
The question of how artists would be paid has followed the Suno and Udio deals since they were announced.
The day after UMG‘s Udio settlement, the nonprofit Music Artists Coalition publicly questioned what share of the revenue would reach artists and how their consent would work.
“The AFM chose this route during our collective bargaining negotiations, and we will continue to work to resolve any issues through these negotiations, as we have in the past. We expect to continue our strong working relationship with the AFM built on mutual respect for the talented musicians in our industry.”
Universal Music Group spokesperson
In response to the AFM suit, a UMG spokesperson told MBW in a statement: “Universal Music Group has been at the forefront of protecting the rights and advancing the interests of artists and songwriters in the age of AI—striking responsible AI licensing agreements to ensure they are compensated, leading the charge for legislation to further protect them and taking legal action against bad actors.”
“The AFM chose this route during our collective bargaining negotiations, and we will continue to work to resolve any issues through these negotiations, as we have in the past. We expect to continue our strong working relationship with the AFM built on mutual respect for the talented musicians in our industry.”
Separately, Warner Music Group told Billboard: “Warner Music Group is growing the value of music by establishing guardrails and architecting a healthy AI ecosystem on the behalf of artists everywhere. We are disappointed by the AFM’s unproductive action amid our ongoing negotiations. We look forward to resuming our negotiations as scheduled.”
“We are disappointed by the AFM’s unproductive action amid our ongoing negotiations. We look forward to resuming our negotiations as scheduled.”
Warner Music Group (via Billboard)
Sony Music Entertainment, the third of the major record companies, is not named in the AFM complaint and has not settled with either Suno or Udio.
The lawsuit was filed two days after Suno announced a USD $400 million funding round that valued the AI company at $5.4 billion.Music Business Worldwide
The American Federation of Musicians (AFM) has initiated legal action against Universal Music Group (UMG) and Warner Music Group (WMG), alleging that these major record labels licensed recordings of its members to artificial intelligence (AI) music firms Suno and Udio without providing compensation or proper credit to the musicians involved. The lawsuit was filed on June 5 in the U.S. District Court for the Southern District of New York and revolves around the licensing agreements that UMG and WMG established with the AI companies. The AFM claims these agreements invoke a « new use » provision in its collective bargaining agreement, which stipulates that musicians should be compensated when their recorded work is utilized for new commercial applications.
The AFM’s complaint emphasizes the union’s discontent with the failure of the labels to pay its members for the use of their recordings in AI music generation. The union has stated, “The AFM brings this lawsuit because defendants, two of the largest music companies in the world, have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit.” Additionally, the AFM has expressed frustration over the labels’ refusal to disclose which specific recordings were used in the AI training processes.
Represented by attorney Eyad Asad from Cohen, Weiss and Simon, the AFM is seeking unspecified monetary damages and is also calling for an order that would compel UMG and WMG to reveal which recordings were utilized in training the AI models. Both record labels had previously settled copyright lawsuits against Udio at the end of 2025, and WMG reached a similar settlement with Suno. These settlements included licensing their catalogs for new AI platforms that the firms plan to launch in the near future. The AFM argues that these deals have generated substantial revenue for the labels, but the session musicians, whose work was integral to the recordings, have not received any financial recognition.
The AFM’s complaint highlights that while UMG and WMG have safeguarded their own economic interests through these settlements, they have neglected to compensate the artists whose music has been used to train AI technologies. The union’s statement underscores the contradiction of the labels’ actions, which involved profiting from the musicians’ work while failing to share any of the financial benefits with the creators. The AFM asserts that the labels are enabling AI companies to exploit the original work of its members, thereby violating the rights of the musicians.
According to the AFM, UMG and WMG licensed significant portions of their music catalogs to the AI firms for both past and future use, and they stand to gain ongoing revenue from these agreements. The AFM contends that the companies have not shared any of the settlement proceeds or future earnings with the artists whose music was incorporated into the development of AI platforms.
In 2024, UMG, WMG, and Sony Music first took legal action against Suno and Udio, alleging mass copyright infringement. UMG settled with Udio in late October 2025, announcing a compensatory settlement and licensing agreement for a new AI music platform planned for launch in 2026. Similarly, WMG reached a settlement with Udio in November 2025, and shortly thereafter, it became the first major label to settle with Suno, which included the acquisition of the concert-discovery platform Songkick from WMG.
The concerns surrounding artist compensation in the wake of the Suno and Udio deals have been prominent since their announcement. The Music Artists Coalition, a nonprofit organization, publicly questioned how much revenue would actually reach the artists involved and how their consent would be obtained for the usage of their works.
In response to the AFM’s lawsuit, a UMG spokesperson stated that the company has been proactive in defending the rights of artists and songwriters in the age of AI by negotiating responsible licensing agreements and advocating for legislative protections. The spokesperson also noted that the AFM chose to pursue litigation during collective bargaining negotiations, expressing a desire to maintain a constructive relationship with the union.
Warner Music Group echoed similar sentiments, expressing disappointment with the AFM’s legal action amidst ongoing negotiations. The company emphasized its commitment to creating a balanced AI ecosystem that benefits artists and looks forward to continuing discussions with the AFM.
Interestingly, Sony Music Entertainment is not named in the AFM’s complaint and has not settled with either Suno or Udio. The lawsuit was filed shortly after Suno announced a substantial funding round, which valued the AI company at $5.4 billion.
In summary, the AFM’s lawsuit against UMG and WMG raises critical questions about artist compensation in the evolving landscape of AI music generation. The legal action highlights ongoing tensions between record labels and musicians regarding the use of their work in new technologies, emphasizing the need for clarity and fairness in how artists are compensated in an increasingly digital and automated music industry.
