Warner Music Settles Lawsuit With AI Generator Udio, Paving the Way for a Licensed Platform in 2026

Warner Music Group has reached a settlement with AI music generator Udio, closing a copyright infringement lawsuit and transforming the platform into a fully licensed service set to launch in 2026. The deal resolves claims filed last June by Warner, Sony Music Entertainment, and UMG Recordings, which accused Udio and rival Suno of training their AI systems on copyrighted music without permission.

Udio Will Scrap Its Current Model and Launch a Licensed Subscription Service

As part of the agreement, Udio will discontinue its existing AI model and build a new subscription-based platform. Users will be able to create remixes, covers, and entirely new tracks using licensed voices, compositions, and stems from participating artists and songwriters.

The platform will also provide credits and payments to creators whose work is used in the AI-assisted music generation process. Warner says the arrangement spans both its recorded music and publishing divisions, unlocking new revenue opportunities while preserving artist protections.

Udio Promises Expanded Safeguards Ahead of Launch

Udio co-founder and CEO Andrew Sanchez called the deal a step toward a future where technology “amplifies creativity and unlocks new opportunities” for artists. The company will implement additional safeguards before the 2026 launch and maintain access to its current system during the transition.

The Lawsuit Accused Udio and Suno of Mass Copyright Theft

The original complaint, led by the Recording Industry Association of America and major labels, accused the platforms of copying “decades worth of the world’s most popular sound recordings” to train their AI models.

The suit sought up to $150,000 per infringement, plus injunctions to block further violations. At the time, the RIAA argued the companies had taken steps to obscure the scale of their alleged infringement, saying the evidence went far beyond audio “snippets” that merely resembled copyrighted material.

Legal Pressure on AI Music Continues to Intensify

The settlement arrives amid growing regulatory battles surrounding AI-generated music. A German court recently ruled that OpenAI’s models unlawfully reproduced copyrighted song lyrics, marking the first European decision to find a major AI system in violation of copyright law.

The ruling ordered OpenAI to stop reproducing protected lyrics, disclose training details, and compensate rights holders — a case expected to influence future licensing practices across the industry.

A New Era of Licensed AI Music Creation Begins

With Udio now moving toward a fully licensed model, the music industry may be entering a new phase in which AI innovation and copyright protections attempt to coexist. For artists and publishers, the settlement offers both compensation and control — while setting a precedent for how AI music platforms will be expected to operate in the years ahead.