Warner Music settles copyright lawsuit with Udio, signs deal for AI music platform

Core Insights - Warner Music Group (WMG) has settled a copyright infringement case with AI music startup Udio and entered into a licensing deal for an AI music creation service set to launch in 2026 [1][6] - The new platform aims to create revenue streams for artists and songwriters while ensuring their work is protected [2] - The collaboration reflects a shift in the music industry's approach to AI, with major labels exploring licensing agreements with AI platforms [6][7] Group 1: Partnership and Licensing - WMG and Udio's partnership will enable a subscription service allowing users to create remixes, covers, and new songs using the voices and compositions of participating artists [2] - The platform will ensure that artists and songwriters are credited and compensated for their contributions [2][3] Group 2: Industry Context - The settlement indicates a significant shift in the music industry's stance on AI, as WMG, Universal Music Group, and Sony Music Entertainment previously sued Udio and rival Suno for copyright infringement [6] - Universal Music Group and Sony Music Entertainment are reportedly in discussions to license their works to Udio and Suno, indicating a broader trend towards collaboration with AI technology [6] Group 3: Investor Confidence - Suno has raised $250 million in a Series C funding round, achieving a post-money valuation of $2.45 billion, reflecting investor confidence in AI music technology [7]