Universal Music and AI song tool Udio settle lawsuit and partner on new platform, sparking backlash

Core Insights - Universal Music Group and AI song generation platform Udio have settled a copyright infringement lawsuit and will collaborate on a new music creation and streaming platform [1][3] - The settlement includes new licensing agreements that aim to create additional revenue opportunities for Universal's artists and songwriters [2][3] - Udio has ceased allowing users to download songs created on its platform, leading to user backlash and subscription cancellations [2][6][10] Company Developments - The settlement is the first since Universal, along with other major labels, sued Udio and another AI generator, Suno, for copyright infringement last year [3] - Universal's CEO emphasized the company's commitment to supporting artists and adapting to new technologies through innovative business models [3] - Udio plans to launch a new AI subscription service next year that will allow users to remix and mashup songs, but downloads will be restricted [5][6] Industry Context - The rise of AI song generation tools like Udio is disrupting the $20 billion music streaming industry, raising concerns about copyright infringement and the quality of AI-generated content [11] - Record labels have accused AI platforms of exploiting artists' works without proper compensation, leading to ongoing debates about the role of AI in music [11] - Universal's lawsuit highlighted specific instances where AI-generated songs closely resembled classic hits, raising further concerns about originality and copyright [12]