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Universal Music and AI song tool Udio settle lawsuit and partner on new platform, sparking outrage

KANIKA SINGH RATHORE, 30/10/202530/10/2025

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universal music The group and AI song generation platform Udio have settled a copyright infringement lawsuit and agreed to team up on a new music creation and streaming platform, the two companies said in a joint announcement.

Universal and Udio said Wednesday they have reached an “indemnification legal settlement” as well as new licensing agreements for recorded music and publishing that will “provide further revenue opportunities” for the record label’s artists and songwriters.

As part of the deal, Udio immediately stopped allowing people to download songs they created, triggering a backlash and apparent exodus among paying users.

The deal is the first since Universal sued Udio and another AI song generator, Suno, over copyright infringement last year along with Sony Music Entertainment and Warner Records.

“These new agreements with Udio demonstrate our commitment to doing the right thing by our artists and songwriters, whether that means adopting new technologies, developing new business models, diversifying revenue streams and beyond,” said Lucian Grainge, CEO of Universal.

Financial terms of the agreement were not disclosed.

Universal announced another AI deal on Thursday, saying it is teaming up with Stability AI to develop “next generation professional music production tools.”

Udio and Suno have pioneered AI song creation technology, which can spit out new songs based on prompts typed into a chatbot-style text box. Users who do not require musical talent can simply request a tune in the style of classic rock, 1980s synth-pop, or West Coast rap.

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Audio and universal, what matters Taylor SwiftOlivia Rodrigo, Drake, and kendrick lamar Among its artists, a new AI subscription service will launch next year.

Udio CEO Andrew Sanchez said in a blog post that people will be able to use it to remix their favorite songs or mashup different tunes or song styles. artist “They will be able to allow how their music can be used,” he said.

However, “downloads from the platform will be unavailable,” he said.

The two companies said in their joint announcement that AI songs created on Udio will be “controlled within the walls” as part of the transition to the new service.

The move angered Udio users, according to posts on Reddit’s Udio forum, where they felt betrayed by the platform’s surprise move and complained that it limited what they could do with their music.

One user accused Universal of taking away “our democratic download freedoms”. Another said, “Audio can never be trusted again.”

Many have vowed to cancel their subscriptions to Udio, which has a free tier as well as premium plans that come with more features.

The deal shows how the rise of AI song creation tools like Udio has disrupted the $20 billion music streaming industry. Record labels accuse the platforms of exploiting artists’ recorded works without compensating them.

The tool has fueled debate over the role of AI in music, while fears about “AI slop” – automatically generated, low-quality mass-produced content – ​​have been highlighted by the rise of imaginary bands passing for real artists.

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In its lawsuit filed against Udio last year, Universal alleged that specific AI-generated songs created on Udio are too similar to Universal-owned classics like Frank Sinatra’s “My Way,” The Temptations’ “My Girl” and holiday favorites like “Rockin’ Around the Christmas Tree” and “Jingle Bell Rock.”

According to the lawsuit, in the “My Girl” example, a written prompt on the Udio that asked for “My Attractive 1964 Girl Smokey Sings Hitsville Soul Pop” produced a song with “a very similar tune, similar chords and very similar backing vocals”, which was co-written by Smokey Robinson and recorded by The Temptations in 1964. The AI-generated song link on Udio now says, “Track not found.”

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AP Technology Writer Matt O’Brien in Providence, Rhode Island contributed to this report.

Uk lawsuitmusicoutragepartnerplatformSettlesongsparkingtoolUdioUniversal

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