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When major record labels sued AI music company Udio in June 2024, Udio answered that its model was designed to learn musical ideas—not reproduce copyrighted works—and that it used filters to prevent copies and imitations of artists’ voices. That was the company’s defense, not a technical finding or a court ruling. Since then, Udio has reached licensing and settlement agreements with Universal Music Group and Warner Music Group, while Sony-related litigation has continued. The distinction at the heart of the dispute remains: a system’s outputs can be new while questions about its training data and how it was obtained remain unresolved.
What Udio said after the 2024 lawsuit
On June 24, 2024, record companies affiliated with Universal, Sony and Warner sued Uncharted Labs, the company operating Udio, in the U.S. District Court for the Southern District of New York. They filed a separate, parallel case against AI music service Suno. The Recording Industry Association of America announced the cases on behalf of the labels. The Udio complaint sets out the plaintiffs’ allegations; it does not establish them as facts.
The next day, Udio said its system was built to learn broad musical ideas from examples, in a way the company compared to people studying music, rather than to reproduce individual works. It said it was “completely uninterested” in reproducing training material and had filters intended to block copyrighted works and artists’ voices. Udio also cast generative music as a new creative tool, comparable in its impact to earlier technologies such as synthesizers and digital recording. The contemporaneous account of Udio’s response reports the company’s position; it is not an independent audit of the model.
That qualification matters. A company’s stated design goal does not establish what data it used, how it obtained that data, whether the system can reproduce recognizable material, or whether its practices comply with copyright law.
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The labels’ claims were about more than what a user hears
The labels alleged that Udio made unauthorized copies of copyrighted sound recordings on a massive scale to train its model. They also alleged that recordings controlled by the plaintiffs were used without permission, that the service could generate material closely resembling specific songs, and that Udio used YouTube-related technical methods—including the yt-dlp tool—to acquire recordings and circumvent technological protection measures. The complaint further argued that a service generating substitutes for commercial recordings could compete with the labels’ businesses without licensing their catalogs.
Those are allegations, not findings. The legal questions fall into several related but distinct buckets:
- Data acquisition: Were copyrighted recordings copied to collect or prepare training data, and were any access controls circumvented?
- Training and model development: Does making or processing copies in training infringe copyright, or could the relevant conduct be fair use? That question is separate from whether a generated track is a copy.
- Outputs: Does a particular generated track reproduce protectable expression from a composition or recording? A broad genre resemblance is not the same as a recognizable melody, arrangement, lyrics, performance or recorded sound.
- Platform conduct: Did the service facilitate infringing outputs, or violate laws governing technological protection measures?
Udio’s 2024 statement chiefly addressed the output question: the company said the model was not meant to reproduce works. The labels’ complaint also challenged training and acquisition practices. Even if a model does not emit a complete song, that alone does not answer whether copies made during training were lawful. Conversely, an allegation about training does not by itself prove that a particular output infringes.
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Why the examples in the complaint mattered—and what they do not prove
The plaintiffs presented generated examples they said resembled well-known songs, including “My Way,” “My Girl,” “Dancing Queen,” “Rockin’ Around the Christmas Tree” and “Jingle Bell Rock.” Associated Press coverage discussed examples in the labels’ case. Their significance is evidentiary: a recognizable passage may help support a claim that a system can reproduce protected expression. It is not, on its own, a judicial determination of infringement or proof about every output the model can produce.
Assessment can depend on what the output contains, how closely it resembles a protected work or recording, and the circumstances in which it was generated. A prompt that avoids naming a singer or song can still ask for recognizable musical characteristics. At the same time, filters that block obvious names may also mistakenly catch lawful or coincidental similarities. The existence of filters is therefore not the same as proof that they work in all relevant cases.
What the court decided—and did not decide
In 2026, the court denied Udio’s motion to dismiss, allowing claims including copyright infringement and alleged circumvention of technological measures to proceed beyond the pleading stage. The decision means the claims were sufficient to continue at that point in the case. It does not mean the court found that Udio infringed, that the labels’ factual allegations were proven, or that the court resolved the fair-use questions on the merits.
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Settlements with Universal and Warner changed the business picture
On October 29, 2025, Universal Music Group and Udio announced a settlement of their dispute and agreements for a new licensed AI music platform planned for 2026. UMG said the future service would use authorized and licensed music. Its announcement also described a transition for the existing product involving measures such as fingerprinting, filtering and a more controlled, “walled-garden” environment. UMG’s announcement describes the parties’ plans, not a court ruling on the earlier model’s legality.
Warner Music Group announced a separate settlement and licensing arrangement with Udio on November 19, 2025, describing a framework for a licensed AI music creation service. Warner’s announcement likewise reflects a negotiated business resolution. A settlement can end litigation between parties without an admission of liability or a judicial ruling on every disputed legal issue. The deals therefore do not prove either that Udio’s original approach was unlawful or that its 2024 defense was correct.
The agreements also do not settle every rights question that can arise in a song. Sound recordings and underlying musical compositions—including lyrics—can have different owners and legal interests. Agreements with major labels do not automatically resolve songwriter, publisher, performer or voice-related rights, rights in user-uploaded material, or claims by independent rights-holders. Nor does a licensed model automatically make every user’s track cleared for every use.
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Sony’s claims keep the dispute alive
In July 2026, Sony Music Entertainment filed a new lawsuit alleging that Udio scraped more than 30,000 recordings from YouTube for training. That description comes from Sony’s allegations as reported by the Los Angeles Times; it is not an established finding. The new case means the Universal and Warner agreements did not end the broader dispute over Udio’s training practices. As of August 18, 2026, the central legal questions remain contested.
What the transition means for musicians and users
Users should treat the legacy service and any future licensed platform as potentially different products with different rules. Downloading, sharing, remixing and commercial use can depend on the applicable terms, transition dates and technical limits. UMG’s description of a controlled service signals that export or distribution may be more limited than in an unrestricted workflow, but users should consult Udio’s current terms and help center for the rules that actually apply to their accounts and creations.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsBefore using generated music in a monetized video, client project, advertisement or commercial release, check the service’s current license, export permissions, restrictions on voice or artist imitation, treatment of uploaded material, cancellation rules and any relevant indemnity language. Platform permission is not the same as owning every right in a track. A user may be allowed to use an output under a service’s terms and still face separate concerns if it contains a recognizable voice, lyrics, sample or protected melody.
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For creators, the practical trade-off is between flexibility and control. A licensed, tightly managed service may offer a clearer relationship with participating rights-holders while limiting how creations can be exported or exploited. A broad catalog license may not cover every songwriter, performer, independent label or territory. And settling with some major labels does not retroactively answer every question about earlier training or historical outputs.
Udio’s original statement is best read narrowly: it described what the company said its model was intended to learn and what safeguards it said it had deployed. It did not resolve whether the training copies were authorized, whether data acquisition crossed legal lines, how reliably filters prevented imitation, or whether particular outputs infringed. The settlements point toward a licensed commercial model; the continuing Sony litigation shows that licensing has not yet supplied a final legal answer.
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