Musicians Union Sues Warner and Universal Over AI Licensing Deals
The American Federation of Musicians sued Warner Music Group and Universal Music Group on June 5, alleging the companies violated their labor contract by licensing sound recordings to AI firms Suno and Udio without compensating union members or providing notice.
The complaint, filed in the Southern District of New York, centers on settlements both music companies reached with the AI startups in 2025. Warner and Universal had sued Suno and Udio separately in 2024 for unauthorized use of copyrighted recordings to train AI models. Rather than pursue those cases to trial, they settled-creating licensing agreements that allow the AI companies to use their catalogs.
The union argues this violates a "new use" provision in their collective bargaining agreement. That clause requires music companies to notify the AFM of any licenses for uses not covered by the contract and to compensate members whose recordings are involved.
What the Union Says Was Violated
The AFM's complaint states that the settlements enable AI companies to ingest copyrighted recordings and generate new sound recordings derived from that training data. Union members created those original recordings "with their own instruments and through their talent, creativity, and hard work," the filing says, yet they received no compensation as the music companies profited from the deals.
Universal's spokesperson James Murtagh-Hopkins disputed the settlement claim, saying the company's lawsuit against Suno "was still ongoing and the parties hadn't reached a settlement." He added that Universal is committed to "responsible AI licensing agreements" and expects to resolve issues through ongoing collective bargaining negotiations with the AFM.
Warner Music Group did not respond to a request for comment.
Why This Matters for HR Leaders
The case highlights a growing tension between technology licensing and labor obligations. When companies settle disputes with third parties, they must consider existing collective bargaining agreements and the compensation rights of union members. The union's argument-that new uses of creative work require notification and payment-reflects a fundamental principle in labor contracts: workers retain rights to their labor even after initial sale.
For HR professionals, this underscores the importance of reviewing labor agreements before entering into licensing deals or technology partnerships. A settlement that seems favorable from a legal or financial standpoint can create compliance issues with union contracts, potentially exposing the company to additional litigation.
Learn more about AI for Human Resources and how organizations are navigating labor law compliance in the AI era. HR leaders managing these issues may also benefit from the AI Learning Path for CHROs.
Case: American Federation of Musicians of the U.S. and Canada v. Warner Music Group Corp., S.D.N.Y., No. 1:26-cv-04760 (filed June 5, 2026)
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