The American Federation of Musicians (AFM) has filed a brief opposing efforts by Universal Music Group (UMG), Warner Records, and Atlantic Recording Corp. to dismiss its federal lawsuit.
The union alleges the major labels licensed catalog master recordings to generative AI developers Suno and Udio without notifying or compensating session musicians.
Why this lawsuit matters: It establishes a crucial legal precedent for the AI era. When major labels settle copyright suits with AI companies for lucrative licensing deals and equity stakes, they keep 100% of the proceeds. This lawsuit will determine whether legacy labor protections force record labels to share AI training revenues with the human musicians whose performances built those models.
The Core Fight: Article 21(a) "New Use"
The case, presiding in the U.S. District Court for the Southern District of New York (SDNY) under U.S. District Judge Edgardo Ramos, hinges on Article 21(a) of the Sound Recording Labor Agreement (SRLA).
- The Union's Position: The AFM argues that feeding catalog tracks into AI generators for commercial model training is a "new use" of master recordings. Under Article 21(a), new uses trigger mandatory notice to the union and negotiated compensation for performing musicians.
- The Labels' Defense: In their August motion to dismiss, UMG and Warner argued that Article 21(a) lacks a pre-set payment scale for AI. They contend AI compensation is a contract negotiation matter for the bargaining table, not a federal lawsuit.
- AFM's Hypocrisy Claim: In its September filing, the AFM highlighted that when major labels sued Suno and Udio in 2024, they claimed AI models harmed human creators. Yet once the labels secured commercial licensing deals in 2025 and 2026, they claimed those same human creators were entitled to nothing.
What Happens Next in Court
Judge Ramos is currently reviewing the motions. If the court grants the labels' motion to dismiss, musicians will be forced to renegotiate AI protections from scratch in upcoming contract talks. If the judge denies the motion, the case enters formal discovery, which could force UMG and Warner to disclose confidential AI licensing deals and reveal every recording handed over to tech platforms.
Hypebot's Bottom Line
Major labels have framed their legal battles against AI as a crusade to defend human artistry. But once those same lawsuits transformed into lucrative corporate payouts, session musicians were locked out of the revenue stream.
The AFM’s lawsuit tests whether AI training is a commercial format covered by standard labor protections or a loophole labels can monetize alone. Hypebot will continue tracking Judge Ramos’s docket as this pivotal case unfolds.
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