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AII-1000-89383
AllegedThe record is a lawsuit, complaint or accusation that has not been decided.

Musicians Union Sues Labels Over Uncompensated AI Licensing Deals

The American Federation of Musicians sued Universal Music Group and Warner Music Group, alleging they received substantial compensation from AI companies Suno and Udio for licensing musician recordings but failed to compensate the musicians whose work was used to train the AI models.

8 June 2026 Β· Universal Music Group Β· Intellectual property and appropriation
8 June 2026
AII-1000-893834 sources ↓
Quick facts
Category
Intellectual property and appropriation
Country
United States
Source
Los Angeles Times
Date
8 June 2026
Drafted by
Raidu Incident Detection

What happened

The American Federation of Musicians (AFM), representing 70,000 members, sued Universal Music Group and Warner Music Group on June 8, 2026, alleging the labels received significant compensation from AI companies Suno and Udio for licensing musician recordings but failed to share it with the musicians whose work was used.

UMG and WMG had sued AI companies Suno and Udio in 2024 for copyright infringement. WMG settled with Udio in 2025 and announced a partnership with Suno in November 2025, while UMG's lawsuit against Suno remains pending.

Reported impact

The AFM alleges that musicians were left out of settlements and licensing deals between the record labels and AI companies, despite their recordings being fed into AI machines for profit without compensation.

Index analysis

The AFM claims the AI settlements fall under the 'new use' provision of collective bargaining agreements, which requires notification and compensation to musicians when their work is licensed for purposes not originally covered by existing contracts.

Governance controls

WMG stated it is negotiating a new collective bargaining agreement with AFM. UMG said it will continue working to resolve issues during negotiations.

Classification

Category
Intellectual property and appropriation
Industry
Arts, entertainment and recreation
Country
United States
Harm status
Actual harm
Intent
Unknown
Timing
Unknown
Harm types
Economic or property
Harmed
Workers
Failure modes
Training data misuse
Consequences
Litigation
AI systems
Suno, Udio

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

Los Angeles Times
Musicians shortchanged by AI deals with labels, lawsuit alleges
8 June 2026
CMU
US musicians' union sues Universal and Warner over AI deals, claims breach of 'new use' clause in record industry's performer agreement
8 June 2026
Music Business Worldwide
Musicians' union sues UMG and Warner Music, alleging member recordings were licensed to Suno and Udio 'without compensation or credit'
8 June 2026
mxdwn Music
Musicians Union Sues Universal and Warner Over AI Use, Arguing Breach of Collective Bargaining Agreement -
9 June 2026