Musicians' Union Sues UMG and WMG Over AI Licensing Deals, Citing Breach of Contract
The American Federation of Musicians (AFM) has filed a lawsuit against Universal Music Group (UMG) and Warner Music Group (WMG), alleging that the major labels breached their collective bargaining agreement by licensing music to AI companies Suno and...
The American Federation of Musicians (AFM), the union representing session musicians across the United States and Canada, has launched a legal battle against two of the music industry's titans: Universal Music Group (UMG) and Warner Music Group (WMG). Filed on Friday, June 5, the lawsuit alleges a breach of their collective bargaining agreement concerning the use of recorded music by artificial intelligence programs.
At the heart of the dispute is the labels' recent licensing agreements with prominent AI music companies, Suno and Udio. The AFM claims that UMG and WMG have failed to share proceeds from these deals with the union, a requirement under their agreement to compensate members for “new uses” of their musical works.
"The AFM brings this lawsuit because defendants, two of the largest music companies in the world, have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit, to two AI companies," the lawsuit states. It further highlights the labels' refusal to provide details on which recordings and whose work is being licensed.
The union’s filing emphasizes, "While the defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, they have refused to compensate the musicians whose work — created with their own instruments and through their talent, creativity, and hard work – is fed into AI machines for profit."
This legal action unfolds against a backdrop of evolving industry dynamics. Earlier in 2024, UMG and WMG—alongside Sony Music Entertainment—had themselves sued Suno and Udio, accusing them of illegally training AI models on millions of copyrighted recordings.
However, by the fall of 2025, both record labels had reversed course, striking deals with these very AI companies. These agreements reportedly allowed the AI firms to train new models on licensed work, with promises that artists and songwriters would be compensated if they opted into AI deals and retained "full control" over their music and likeness.
In statements provided to Billboard, a spokesperson for UMG asserted the label's "strong working relationship with the AFM built on mutual respect for the talented musicians in our industry," indicating a willingness to "resolve any issues through [bargaining] negotiations."
Similarly, a WMG spokesperson expressed disappointment to Billboard regarding the AFM’s "unproductive action amid our ongoing negotiations," but affirmed they "looked forward" to continuing the conversation.
The outcome of this lawsuit could set a significant precedent for how AI technology integrates with existing labor agreements in the music industry, particularly concerning the rights and compensation of session musicians.
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