Major record labels sue AI start-ups in landmark copyright case

Major record labels sue AI start-ups in landmark copyright case

Sony, Universal, and Warner Records Lead Legal Battle Against AI Firms

The world’s largest music labels are taking legal action against two artificial intelligence (AI) start-ups, Suno and Udio, over alleged copyright violations in what could be a precedent-setting case. Major record companies, including Sony Music, Universal Music Group, and Warner Records, accuse the start-ups of massive copyright infringement, describing the scale as “almost unimaginable.”

Allegations of infringement

The lawsuit, announced by the Recording Industry Association of America (RIAA) on Monday, claims that Suno and Udio’s software unlawfully replicates music to generate similar compositions. The labels are seeking $150,000 per infringed work. Despite requests for comment, neither Suno nor Udio have responded.

Part of a larger wave of lawsuits

This lawsuit is part of a broader trend, with various authors, news organizations, and other entities challenging the rights of AI firms to use their intellectual property. Suno, based in Massachusetts, launched its first product last year and claims over 10 million users have created music using its tool. Partnered with Microsoft, Suno charges a monthly fee for its service and recently raised $125 million from investors.

New York-based Udio, also known as Uncharted Labs, is backed by notable venture capital firms such as Andreessen Horowitz. Udio’s app gained rapid popularity upon its public release in April, particularly for creating “BBL Drizzy,” a parody track linked to a feud between artists Kendrick Lamar and Drake.

AI and the fair use doctrine

AI companies have traditionally defended their use of copyrighted material under the fair use doctrine, which permits the unlicensed use of copyrighted works for purposes like satire and news. Proponents argue that machine learning in AI tools is akin to the way humans learn by engaging with previous works.

However, the lawsuits, filed in federal courts in Massachusetts and New York, assert that the AI firms are merely profiting from copied songs. “The use here is far from transformative, as there is no functional purpose for… [the] AI model to ingest the Copyrighted Recordings other than to spit out new, competing music files,” the complaints state.

Examples of alleged infringement

The complaints highlight that Suno and Udio create works that are nearly indistinguishable from original recordings, such as “Prancing Queen,” which even ardent ABBA fans might mistake for an authentic track. The Udio lawsuit specifically mentions tracks like Mariah Carey’s “All I Want for Christmas is You” and “My Girl” by The Temptations.

The record labels argue that the start-ups’ commercial motives threaten genuine human artistry, which is the core of copyright protection. They emphasize that AI firms must adhere to existing rules, condemning the “wholesale theft” of recordings that endangers the entire music ecosystem.

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