If you can't sink the ship, buy it!: Major record labels court AI music startups like Suno and Udio amidst the million dollar copyright lawsuits charged against them.

Time of India

a day ago

iStock
Universal Music Group,
These
In April 2024, UMG, Sony Music Entertainment, and Warner Music Group filed a suit against
The labels are exploring a potential deal that includes licensing fees and equity stakes in Suno and Udio, a move that could lead to lawsuit settlements. Reportedly a deal of such kind would be enough to settle lawsuits between the two sides.
Accepting the Shift: Rather than trying to ban AI or block AI from the music industry, these companies have made peace with the technological shift and have begun to adapt themselves around the potential benefits fostered by AI. 'WMG believes that machine learning and AI technologies have creative potential for artists and songwriters.' The company said in a July 2024 statement regarding AI technologies. 'However, it is imperative that all uses and implementations of machine learning and AI technologies respect the rights of all those involved in the creation, marketing, promotion, and distribution of music.'
While early discussions are still underway, any licensing deal would likely come with its own restrictions. Labels want an assurance that the AI-generated songs will not cause impersonation without consent and distribute content that harms their brand's value into the market. Despite concerns, labels see opportunity in new revenue streams, from marketing jingles and soundtrack content to virtual artists.
Live Events
The silver lining: This lawsuit-driven experiment isn't the first time the music industry has experimented with
Other virtual performers have also gained significant traction in this manner. For instance, in 2023, Warner Music signed the CGI influencer Noonoouri, whose music, created with synthetic vocals and AI-generated lyrics, blurs the boundary between synthetic and human-generated music. This deal symbolized that AI wasn't just remixing soundtracks anymore; it was now producing the next generation of pop stars.
Startups like Suno and Udio, with venture capital support and next-gen generative models as their armor, are creating new boundaries of what AI can do. For example, Suno can create full-fledged songs with vocals, lyrics, and instruments, and all it requires is a single text prompt. Udio, on the other hand, boasts its studio-level audio quality.
The Stake: The talks symbolize a pattern, familiar in the entertainment industry, in the way it did for accepting TikTok; every digital disruption was initially met with resistance before being co-opted. This time, however, the stakes are higher, not just in dollars, for this could potentially undermine artist earnings and intellectual property rights if the AI were to flood the market with convincing fakes and unauthorized pastiches.
Whether these licensing talks culminate in a deal or dissolve amid legal tension, one thing is clear: AI is no longer an invader but a part of the industry's future.
Warner Music Group , and Sony Music Entertainment, amidst the ongoing lawsuit, are in the early-stage discussions to license portions of their vast music catalogs to 'Suno' and 'Udio.' The same firms they are currently suing.These AI music startups were long viewed as threats in the industry with outstanding billion-dollar lawsuits stacked against them; now, however, they are viewed as potential partners in the rapidly evolving music industry. With their ability to generate studio-quality songs from text prompts and dramatically lessened monetary requirements.In April 2024, UMG, Sony Music Entertainment, and Warner Music Group filed a suit against Suno and Udio , accusing them of using copyrighted material to develop their model without consent. Although, beneath the tensions remains an undeniable fact: AI is here to stay, and the music industry is adapting. Therefore, negotiations between the two sides could open doors for AI-generated tracks to consensually mimic the styles of popular artists, garnering both the label's approval and commercial benefits.The labels are exploring a potential deal that includes licensing fees and equity stakes in Suno and Udio, a move that could lead to lawsuit settlements. Reportedly a deal of such kind would be enough to settle lawsuits between the two sides.Rather than trying to ban AI or block AI from the music industry, these companies have made peace with the technological shift and have begun to adapt themselves around the potential benefits fostered by AI. 'WMG believes that machine learning and AI technologies have creative potential for artists and songwriters.' The company said in a July 2024 statement regarding AI technologies. 'However, it is imperative that all uses and implementations of machine learning and AI technologies respect the rights of all those involved in the creation, marketing, promotion, and distribution of music.'While early discussions are still underway, any licensing deal would likely come with its own restrictions. Labels want an assurance that the AI-generated songs will not cause impersonation without consent and distribute content that harms their brand's value into the market. Despite concerns, labels see opportunity in new revenue streams, from marketing jingles and soundtrack content to virtual artists.This lawsuit-driven experiment isn't the first time the music industry has experimented with AI-generated music or artists. K-pop label SM Entertainment was notably known for fusing traditional K-pop music with virtual personas since 2020, with the debut of their 4th generation girl group, 'Aespa.' Each of the girl group's members has a hyper-realistic AI avatar counterpart, curated to interact with the fans, participate in videos, and also live in a fictional world called 'KWANGYA.' This fusion reshaped how K-pop marketing worked, for these avatars were not just novelty tools but rather integrated parts of the groups' concepts and marketing strategies, signaling a future where artists can have both a traditional presence and a digital one, the label's creative direction.Other virtual performers have also gained significant traction in this manner. For instance, in 2023, Warner Music signed the CGI influencer Noonoouri, whose music, created with synthetic vocals and AI-generated lyrics, blurs the boundary between synthetic and human-generated music. This deal symbolized that AI wasn't just remixing soundtracks anymore; it was now producing the next generation of pop stars.Startups like Suno and Udio, with venture capital support and next-gen generative models as their armor, are creating new boundaries of what AI can do. For example, Suno can create full-fledged songs with vocals, lyrics, and instruments, and all it requires is a single text prompt. Udio, on the other hand, boasts its studio-level audio quality.The talks symbolize a pattern, familiar in the entertainment industry, in the way it did for accepting TikTok; every digital disruption was initially met with resistance before being co-opted. This time, however, the stakes are higher, not just in dollars, for this could potentially undermine artist earnings and intellectual property rights if the AI were to flood the market with convincing fakes and unauthorized pastiches.Whether these licensing talks culminate in a deal or dissolve amid legal tension, one thing is clear: AI is no longer an invader but a part of the industry's future.
Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.