American Federation of Musicians opposes Universal and Warner motions to dismiss its lawsuit over AI licensing deals with Suno and Udio

The American Federation of Musicians (AFM) is fighting efforts by Universal Music Group, Warner Records and Atlantic Recording Corp. to dismiss its lawsuit over the labels' AI licensing deals with Suno and Udio. The union first sued in June (amending the complaint on July 24), alleging the labels licensed recordings on which AFM-represented session musicians worked to the two AI companies without paying or crediting those musicians and without telling the union which recordings were handed over. The AFM filed its opposition in the Southern District of New York on September 4, arguing that licensing recordings to AI companies is a 'new use' under Article 21(a) of the Sound Recording Labor Agreement and should trigger payments and notice to musicians. Universal argues the 'new use' section creates no standalone payment rate and that, with no separate agreement covering AI use, no payment is required; Warner Records and Atlantic have likewise asked for dismissal. At a July hearing, Judge Edgardo Ramos asked the labels, 'And so why shouldn't you pay the authors of that music?' The AFM also points to existing sampling rules as a possible basis for AI-use payments. The court has not yet ruled on the motions.

Why it matters to creators: the case tests whether session musicians and performers get paid when their recorded performances are licensed to AI companies - the labels' AI deals paid the labels, and the union says the money never reached the performers whose work made the catalogs valuable.

Not yet known: how the court interprets the SRLA's 'new use' clause for AI licensing; no ruling on the dismissal motions yet; Sony, which has not settled with either AI company, is not part of this suit.