This week’s BL Business Branding Newsletter turns up the volume on an intellectual property dispute between music and artificial intelligence, as the American Federation of Musicians (AFM) has filed a lawsuit against Universal Music Group and Warner Music Group over the licensing of sound recordings to AI developers.
According to the complaint filed in federal court in New York, the AFM alleges that Universal Music Group and Warner Music Group violated their agreements with the AFM by licensing music catalogs to artificial intelligence companies, Suno and Udio, without compensating the musicians whose songs are embedded in those recordings. The union argues that many of these agreements require additional payments when recordings are reused in new commercial contexts, and that AI training should count as one of them.
This lawsuit is the latest in a wave of legal challenges over AI’s use of creative content. In 2023, comedian and author Sarah Silverman and other authors sued Meta, alleging their copyrighted books were used without permission to train large language models. Around the same time, the Writers Guild of America made AI protections a major issue in labor negotiations, pushing for protections against studios using AI to generate scripts or repurpose writers’ work without compensation. Actors and musicians have also raised similar concerns about voice cloning. These cases mark a legal trend where continued use of Ai for creative works is sparking controversy and lawsuits from artists.
This case strikes a major chord in the evolving debate over AI and intellectual property. It highlights the growing tension between record labels and the artists whose work creates value. Major music companies have publicly fought against unauthorized AI-generated songs and voice cloning, often pointing out the need to protect artists and intellectual property.
What Can Businesses Learn From This?
Businesses across industries that create, own, or license content should pay close attention, as securing and clearly defining intellectual property rights is more important than ever in the age of AI. Whether it’s copyrighted content or trademarks, companies need to know what rights they have to use it or authorize others to use it.
As AI tools become more integrated into business operations, those rights and revenue shares can quickly become blurred. Strong and clear intellectual property protections can help businesses preserve value, maintain control, and reduce legal risk as AI continues to evolve.
Need guidance on how to protect your brand? Reach out to our BL Trademark Team by contacting Seth Berenzweig at sberenzweig@berenzweiglaw.com.