Major Labels in Talks to License AI Use of Music, Report Says

Warner Music Group (WMG) shares fell on word the big music distributor was one of three firms negotiating with artificial intelligence (AI) startups to monetize AI use of its music catalog. 

The Wall Street Journal and Bloomberg reported that Warner Music, along with Universal Music Group and Sony Group Corp. (SONY) unit Sony Music Group, are discussing licensing deals with Suno and Udio to receive compensation when music by artists they represent is used to train generative AI models and produces new music.

The Journal said that the music companies want the AI firms to develop fingerprinting and attribution technology that will track when and how a song is used. Plus, they want to be able to actively participate in the products Suno and Udio release, which includes which songs are developed and how they work.

The Journal noted both Suno and Udio, which are being sued for copyright infringement, have argued that they aren’t infringing on the music companies’ business. However, it added because of “a more uncertain regulatory environment and investor pressure to develop commercial frameworks for the use of music in generative AI products,” both firms are eager to come to an agreement.     

The paper explained that a deal could set a precedent for how songs are used and artists paid for AI-generated remixes.

Shares of Warner Music Group, which represents artists including Ed Sheeran, Bruno Mars, and Dua Lipa, dipped to their lowest level in two years.