American Federation of Musicians amends lawsuit against UMG, Warner Music over AI deals

The amended complaint was filed less than two months after the union launched its legal action and follows a dispute over provisions in the Sound Recording Labor Agreement (SRLA) concerning the “new use” of recordings featuring the work of AFM musicians.

The union argues that licensing agreements between the major music companies and AI music platforms Suno and Udio constitute a new use of recordings and that musicians who performed on the affected tracks are therefore entitled to additional compensation.

The AFM is also seeking information about the agreements, arguing that UMG and Warner Music have failed to provide details required under the labour agreement. The union says the information is necessary to determine the compensation owed to musicians, while also seeking damages in the case.

The amended complaint largely retains the claims made in the original lawsuit but changes the Warner Music entities named as defendants. The AFM has replaced Warner Music Group Corp. with Warner Records and Atlantic Records after Warner argued that its parent company was not a signatory to the SRLA and therefore could not be sued for an alleged breach of the agreement.

“But Warner Music Group Corp. is not a signatory to the SRLA [Sound Recording Labor Agreement], does not itself own copyrights, was not a plaintiff in the copyright infringement lawsuits against Suno and Udio, and thus does not have licences with Suno or Udio,” Warner Music previously said. “To the extent AFM seeks to assert a breach of contract, it is not against Warner Music Group Corp.”

The amended filing also points to Udio’s planned Starstruck service as evidence that the licensing arrangements could involve what the union considers a new commercial use of musicians’ performances.

“Users are reportedly required to select a particular artist and recording before generating outputs, and the resulting recordings are reportedly owned by the participating rights holders rather than the user,” the filing states, arguing that such activity “goes beyond the uses contemplated” when the original recordings were made.

The case is part of a wider legal dispute over the use of copyrighted music and recorded performances to develop and operate generative AI systems. Sony Music remains in separate legal disputes with both Suno and Udio, while UMG and Warner Music have entered licensing agreements with the companies.

A judge overseeing the AFM case has set deadlines for motions to dismiss through mid-September. The proceedings could have wider implications for the music industry, particularly around how musicians are compensated when existing recordings are licensed for emerging AI applications.

The outcome could also provide greater clarity on the scope of the licensing agreements between the major music companies and AI firms, as well as the volume of recordings and other material used to train AI systems. Such information could be relevant to other ongoing legal disputes involving AI-generated music and copyright.