UMG Settles Copyright Infringement Lawsuit with Udio, Enhancing Future Music Collaboration

NEW YORK, NY — Universal Music Group (UMG) announced on October 29, 2025, that it has settled its copyright infringement litigation against music platform Udio. The resolution includes plans for both companies to collaborate on a new commercial music creation and streaming experience set to launch in 2026.

The partnership aims to create revenue opportunities for UMG artists and songwriters while allowing users to customize, stream, and share music in a controlled environment, described by the companies as a ‘licensed and protected environment.’ Following the announcement, the Music Artists Coalition (MAC), which represents music creators, expressed the need for clarity regarding revenue splits and artist consent.

Irving Azoff, a board member of MAC, emphasized the importance of ensuring artists receive fair compensation and creative control. “Every technological advance offers opportunity, but we have to make sure it doesn’t come at the expense of the people who actually create the music,” said Azoff.

The coalition is seeking answers on how revenue will be divided among artists, labels, and AI companies, especially when music is used to train AI models. Ron Gubitz, MAC’s Executive Director, cautioned that while artist participation in these new ventures is appealing, it must come with fair compensation and control over how their work is utilized.

The settlement not only brings a new business model but also mandates that Udio’s existing product will remain accessible during the transition, with enhanced controls such as fingerprinting and filtering. Jordan Bromley, Leader at Manatt Entertainment, noted that a true partnership includes appropriate oversight and remuneration for all parties involved.

Shortly after the Udio deal, UMG revealed another agreement with Stability AI to develop advanced music creation tools designed for artists, producers, and songwriters worldwide. CEO Sir Lucian Grainge described these agreements as fundamental to fostering a healthy commercial AI ecosystem.

Ed Newton-Rex, CEO of Fairly Trained, commented on the significance of the collaboration, stating, “This is a huge win for Universal and for the music industry as a whole. Udio will license training data; artists’ and songwriters’ permission will be sought, and generated music will be contained within the platform.”