UMG settles copyright dispute with Udio, announce partnership for licensed generative music

Universal Music Group (UMG), a global player in music-based entertainment, and Udio, a cutting-edge AI-powered music creation platform, have announced a pivotal set of strategic agreements. The partnership resolves prior copyright infringement litigation and paves the way for an innovative commercial collaboration aimed at redefining music creation, consumption, and streaming.

The comprehensive deal includes a compensatory legal settlement and new recording and publishing license agreements that are structured to provide further revenue opportunities for UMG’s extensive roster of artists and songwriters.

The core of the partnership is a new subscription platform, slated for launch in 2026. This service will be powered by new generative AI technology trained exclusively on authorized and licensed music. The goal is to transform the user experience by establishing a licensed and protected environment where fans can responsibly customize, stream, and share music directly on the Udio platform. The collaboration signals a major shift in how established music rights holders are engaging with generative AI technology.

Andrew Sanchez, Co-founder and CEO, Udio: ''We couldn’t be more thrilled about this collaboration and the opportunity to work alongside UMG to redefine how AI empowers artists and fans. This moment brings to life everything we’ve been building toward—uniting AI and the music industry in a way that truly champions artists. Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.''

Sir Lucian Grainge, Chairman and CEO of UMG: ''These new agreements with Udio demonstrate our commitment to do what's right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond. We look forward to working with Andrew who shares our belief that together, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish and create incredible experiences for fans.''

During the transition period before the 2026 launch, Udio's existing product will remain available but will undergo immediate modifications. Creations will be contained within a "walled garden," and the service will implement rigorous measures—including fingerprinting, filtering, and other controls - to protect intellectual property ahead of the official debut of the updated, licensed service.

UMG has consistently played a pioneering role in shaping the commercial relationship between music and technology. The company was the first to enter into AI-related agreements with major players, including YouTube, TikTok, Meta, BandLab, and others. The deal with Udio marks the next major chapter in its strategy to unlock new capabilities while securing compensation and protections for rights holders.

www.universalmusic.com
www.udio.com

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