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Universal Music, Udio Reach Copyright Infringement Settlement


— October 30, 2025

Universal and Udio said that they had reached a “compensatory legal settlement” as well as new licensing agreements for recorded music and publish that will “provide further revenue opportunities” for artists and songwriters alike.


Universal Music Group has settled a copyright infringement with artificial intelligence company Udio, saying both sides have reached an agreement to launch a new music creation and streaming platform.

According to The Associated Press, in a joint statement Wednesday, Universal and Udio said that they had reached a “compensatory legal settlement” as well as new licensing agreements for recorded music and publish that will “provide further revenue opportunities” for artists and songwriters alike.

“These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond,” Universal Music Group CEO Lucain Grainge said in a statement.

Under the terms of the settlement, Udio agreed to stop letting users download songs that they’ve created—a stipulation that has, apparently, triggered backlash from its premium member base.

Udio, notes The Associated Press, was an early pioneer in “AI song generation technology,” which lets users generate music based on typed prompts. Users can request tunes of different types, and from differing genres, and receive an output in a matter of seconds.

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Andrew Sanchez, the CEO of Udio, said in a blog post that future users will be able to use its future platform with Universal to remix songs from real-life artists and combine different tunes and styles. Artists, for their part, will have some say in deciding how their music can—and cannot—be used with respect to artificial intelligence.

“This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists,” Sanchez said in a statement. “Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”

“We look forward to working with Andrew who shares our belief that together, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish and create incredible experiences for fans,” Universal CEO Grainge added.

Universal Music Studio also said, in a separate announcement, that it is planning to partner with another artificial intelligence company—Stability AI—to develop a slate of AI music creation tools. These tools will be “powered by responsibly trained generative AI and build to support the creative process of artists, producers and songwriters globally.”

Sources

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

Universal Music Group Settles Major AI Lawsuit With Udio After Song Theft Claims

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