In a significant shift within the music industry, Warner Music Group (WMG) has settled a landmark infringement lawsuit with the AI music generation platform, Suno. This partnership marks WMG as the first major record label to engage with an AI music platform of this kind, signaling a new era in the intersection of technology and music creativity.
While specific financial details of the settlement have not been disclosed, both companies have emphasized their commitment to “compensating and protecting artists, songwriters, and the wider creative community.” This indicates a collaborative move towards a more ethical application of AI in music, aiming to benefit all stakeholders involved.
WMG’s CEO, Robert Kyncl, hailed the agreement, describing it as a victory for the creative community. He stated, “With Suno rapidly scaling, both in users and monetization, we’ve seized this opportunity to shape models that expand revenue and deliver new fan experiences.” Kyncl highlighted that AI can be “pro-artist” when it adheres to strict guidelines ensuring that artists have control over their names, images, and compositions in AI-generated songs.
Following this partnership, Suno is set to launch advanced and licensed models for music generation, transitioning away from its current offerings. In a move reminiscent of their previous settlement with another AI platform, Udio, WMG’s deal imposes new limitations on the downloading of music created on Suno. Users on Suno’s paid tier will be allowed to download their creations off-platform, albeit with certain caps enforced, potentially curbing the overwhelming flood of AI-generated music onto streaming platforms.
This landmark agreement comes over a year after WMG initiated legal action against Suno and its competitor Udio, alongside other major labels like Universal Music Group and Sony Music Group. The accusations cited unauthorized use of millions of songs to train their AI models, raising significant concerns about intellectual property rights in the AI landscape. Just last month, UMG announced a settlement with Udio, while WMG secured its own deal shortly thereafter. Sony, however, remains embroiled in litigation with both platforms, underscoring the ongoing challenges facing the industry.
The new partnership also includes an acquisition deal where Suno will take over Songkick from WMG, although financial specifics surrounding this transaction were not revealed. Such acquisitions indicate a strategy to broaden the scope of services that AI music platforms can offer, potentially creating a more cohesive and multifaceted music ecosystem.
Adding to the excitement, just over a week prior, Suno had announced the successful closure of a major funding round, securing $250 million and reaching a valuation of $2.45 billion. The deal was backed by notable VC firms, including Menlo Ventures, along with NVIDIA’s NVentures and Hallwood Media, founded by former Geffen Records president Neil Jacobson. This financial backing emphasizes confidence in the growth and potential of AI in music.
Suno’s CEO, Mikey Shulman, expressed enthusiasm about the partnership with WMG, stating that it would enhance the experience for music lovers and propel their mission to reshape the value of music globally. Shulman mentioned plans to roll out advanced features for music creation and foster collaborations with talented musicians, setting an ambitious agenda for the future of music in the AI arena.