The American Federation of Musicians alleges that the majors licensed recordings to AI firms Suno and Udio without sharing proceeds, breaching a collective bargaining agreement.
The American Federation of Musicians (AFM) is suing Universal Music Group and Warner Music Group, accusing the two majors of licensing recordings by union members to AI companies without compensation or credit. The lawsuit, filed on June 5, centers on deals struck last year with Suno and Udio — AI music firms that both labels had previously sued for copyright infringement.
Behind the legal action is a claim that the labels breached their collective bargaining agreement with session musicians. According to the AFM, that agreement requires them to share revenue from “new uses” of recorded work. Yet when UMG and WMG opted to settle with Suno and Udio and then license their catalogs for AI training, the union says no proceeds reached the musicians who performed on those recordings. The lawsuit also states the labels have “refused to provide information” about which recordings are being used.
The sequence is notable. In 2024, UMG, WMG and Sony Music sued Suno and Udio, alleging the unauthorized ingestion of copyrighted recordings. By late 2025, the labels had pivoted to settlement and licensing agreements, allowing the AI firms to train models on officially licensed music. At the time, they emphasized that artists would be compensated if they opted in and would retain control over their work. But the AFM’s complaint suggests that opt-in framework did not extend to the session players who supplied the actual performances.
In response, UMG pointed to a “strong working relationship with the AFM” and said it would resolve issues through ongoing negotiations. WMG called the lawsuit an “unproductive action” and said it looked forward to continuing the conversation. For now, the suit spotlights the disconnect between major-label AI strategy and the working musicians whose recorded output makes those strategies possible.
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