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