The American Federation of Musicians has sued Warner Music Group and Universal Music Group for licensing members' sound recordings to artificial intelligence companies without compensation or notice.
The union filed the federal complaint on June 5, 2026, in the U.S. District Court for the Southern District of New York under case number 1:26-cv-04760. It accuses the two labels of breaching their collective bargaining agreement by supplying recordings to Suno and Udio for AI training after reaching copyright settlements with those firms in 2025.
The suit centers on the agreement's "new use" provision, which requires notification and payment to musicians when their work is licensed for purposes beyond the original recording. The complaint states that no such steps were taken.
The complaint reads:
Two of the largest music companies in the world have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit.
The filing further claims the labels secured revenue streams through the AI settlements while excluding the musicians whose performances form the basis of the training data.
It further states:
The defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, while refusing to compensate the musicians whose work is fed into AI machines for profit.
Sony Music Entertainment is not included in the lawsuit because it has not reached similar settlements with Suno or Udio. The AFM seeks unspecified monetary damages for the alleged violations.
Billboard first obtained and published details of the complaint. Reuters and The Hollywood Reporter confirmed the filing and outlined the core allegations regarding the 2025 settlements and the subsequent licensing arrangements.
The case highlights ongoing tensions between major labels and performer unions over how revenue from emerging AI technologies is distributed under existing contracts.
The American Federation of Musicians has a long history of advocating for artists rights in the face of technological changes. Previous battles have included fights over digital streaming royalties and other new media uses. This latest lawsuit continues that tradition of protecting member interests against powerful industry players. The case is expected to proceed through discovery and possibly settlement talks in the coming months.
