Musicians Union Opposes Dismissal in AI Licensing Lawsuit

The American Federation of Musicians (AFM) filed its opposition on September 4 to motions to dismiss by Universal Music Group (UMG), Warner Records, and Atlantic Recording Corp. in a federal lawsuit.

The union alleges that licensing deals between these labels and AI companies, Udio and Suno, permitted recordings by AFM members to be used for "commercial exploitation" by AI systems.

Warner Records previously settled with Udio in November 2025, followed by a settlement with Suno days later. Universal Music Group reached a settlement and licensing agreement with Udio in October 2025 but has not settled with Suno.

The lawsuit, initially filed in June with an amended complaint on July 24, claims the labels breached Article 21(a) of the Sound Recording Labor Agreement (SRLA) by licensing member recordings to AI music companies without proper payment or credit.

UMG filed its motion to dismiss on August 5, arguing that Article 21(a) does not specify a rate for AI use, and therefore no payment is owed. Warner Records and Atlantic filed their own motion on August 14.

The AFM counters that Article 21(a) is open to multiple interpretations, and its reading—requiring payment and notice for new uses not covered by the SRLA—is plausible enough to withstand a dismissal motion.

The union also cited copyright complaints filed by UMG and Warner against Udio and Suno in June 2024. In those complaints, the labels alleged AI companies were "replacing the work of human artists" and "diluting royalty pools."

The AFM highlighted that the labels' current position, denying payment to musicians for AI use, is "untenable" given their prior statements about AI's impact on human artists and royalties.

Furthermore, the union pointed to a July 21 pre-motion conference where US District Judge Edgardo Ramos questioned the labels, asking why they should not pay the authors of music used to train AI models if they benefit from such licensing.

The ongoing dispute underscores the music industry's struggle to define compensation and rights for artists in the rapidly evolving landscape of generative AI. Labels seek to monetize new technologies, while unions aim to protect their members' livelihoods.

UMG stated in summer that it is "at the forefront of protecting the rights and advancing the interests of artists and songwriters in the age of AI," citing its licensing deals and bargaining history with the union.

The AFM and the labels are currently negotiating the next SRLA, with AI compensation as a central topic. Briefing on the dismissal motions is scheduled to conclude on September 11, with a court decision expected thereafter.