Agreement with Udio could allow fans to create their own songs using licensed tracks if artists opt in
Warner Music has struck a licensing deal with artificial intelligence start-up Udio to power a new streaming platform with its songs, according to people familiar with the matter, as major labels seek to set terms for payment in the AI era.
Warner, the world’s third-largest music company and home to acts including Charli XCX, Madonna and Ed Sheeran, has settled a lawsuit with Udio as part of the agreement, according to people familiar with the matter.
As part of the deal, Udio plans to launch a new subscription service next year, allowing fans to create their own songs using licensed tracks. Warner’s artists would need to agree for their music to be included in the service, these people said.
An announcement could come as early as Wednesday, said people familiar with the matter.
Warner Music, along with rivals Universal and Sony, last year sued Udio, alleging the company was illegally using copyrighted recordings to train its AI models.
Universal Music last month struck a deal with Udio to include its catalogue in the upcoming subscription service.
Warner also announced a licensing deal with Stability AI, an AI music tools specialist, on Wednesday. The label is close to unveiling more agreements in the coming days, said people familiar with the talks. A deal with music start-up Klay was expected to be announced on Thursday.
After the Napster crisis of the early 2000s, music companies are trying to get ahead of disruptive technology this time around. The labels have spent much of this year in negotiations with AI groups to hash out the terms for licensed products to create songs using their music copyrights — and ensure they are properly compensated.
However, many artists remain staunchly opposed to AI-generated music, fearing it could undermine the value of their work.
Paul McCartney, Kate Bush, Annie Lennox and others have released a “silent” album to protest against the UK government’s recent changes to copyright law. The album’s track listing spells out the message: “The British government must not legalise music theft to benefit AI companies.”
Elliot Grainge, chief executive of Warner’s Atlantic Records, told the Financial Times in September: “Labels have a responsibility to negotiate the best deals for their artists — and they’re really good at that. They learned from their mistakes in the past.”
Warner Music declined to comment and Udio did not immediately respond to a request for comment.
Source: https://www.ft.com/content/3569eaed-d031-4d04-af79-3b3d7c6e836f
