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9/1/2025
AI & Music Industry
4 min read
By Lunar Boom Music Insights
Major Labels Sue AI Startups: What It Means for Music

Major Labels Sue AI Startups: What It Means for Music

Big record labels like Sony, Universal, and Warner have started lawsuits against AI music startups such as Suno and Udio. The reason? They say these companies used songs from their artists without permission to train AI models. This could mean huge payouts, with damages reaching up to $150,000 per song RIAA files suit.

Real Lawsuits

In 2024, the Recording Industry Association of America (RIAA) announced lawsuits in New York and Massachusetts. They said AI startups copied music from many artists and styles to build their tools RIAA announcements.

Independent country singer Tony Justice also filed class-action lawsuits against Suno and Udio, showing that this fight is not just for big names but also smaller artists Class-action lawsuit.

Pressure on Streaming Services

Streaming platforms are also under pressure. Deezer reported that nearly 18% of daily uploads are AI-generated. Many of these streams came from bots, not real listeners. Deezer began tagging AI-made tracks and blocking fraud from getting royalties Deezer AI tagging.

Talks About Solutions

Even while fighting in court, labels and AI startups are talking about licensing deals. These deals could let AI companies pay to use music legally, similar to how Spotify pays labels. Reports say Universal, Sony, and Warner are in early talks about these deals Labels negotiate licensing.

Why This Matters

    1. Protecting artists: Creators want to make sure their work is not used for free.
    2. Clear rules: Courts will help decide if using songs to train AI breaks copyright.
    3. Future of music: Deals between labels and AI startups could set the path for how AI music works fairly.

Bottom Line

AI music is not going away, but lawsuits show that the music industry wants rules and respect for artists. Whether through court battles or licensing deals, the way we balance AI and music will shape the future of the industry.
AI music lawsuitsSunoUdiomusic copyrightrecord labels vs AI