Universal Music Group Settles Udio Lawsuit, Partners with Stability AI on Licensed AI Music Platforms

Universal Music Group (UMG) has settled its copyright infringement lawsuit against AI music platform Udio, resulting in a partnership to launch a licensed AI music creation and streaming platform that will allow users to customize, stream, and share music responsibly, with artists and songwriters receiving additional revenue through licensing agreements. This new platform, set to debut in 2026, will feature fingerprinting and filtering technologies to protect intellectual property, and will operate under strict controls such as artist opt-in requirements and limitations on AI-generated content distribution. UMG is also collaborating with Stability AI to develop next-generation professional music creation tools powered by responsibly trained generative AI, focusing on supporting artists' creative processes. These moves represent UMG's strategy to embrace AI by combining legal action with partnerships that ensure artists' control and compensation while fostering new creative and commercial opportunities. The agreements highlight the music industry's evolving approach to AI, addressing concerns about copyright, quality, and the role of technology in music creation. UMG executives emphasize the importance of responsible AI training and integration aligned with artists' ambitions and rights.