This conflict reveals the need for companies operating with AI to review licenses, data sources, and technological development clauses.
What began as a legal dispute over copyright infringement ultimately turned into one of the most significant agreements of the year for the music industry and the world of intellectual property.
First, we need to go back to early 2025, when Warner Music detected that platforms such as Udio were generating compositions and voices that accurately imitated real artists belonging to traditional record labels.
Udio, known for its AI-based music creation platform, was gaining notoriety because it allowed users to generate complete songs in seconds, with voices and styles reminiscent of world-famous performers. For Warner, this was a sign that its repertoire had been used without authorization to train these models.
Warner's lawsuit against Udio
The conflict did not arise solely from the final result of the songs generated, but also from the training of the model. The question was whether the system had learned directly from protected works without obtaining a license or prior authorization. Warner based its lawsuit on the argument that its catalog of recordings, melodies, and voices could not be used to feed an artificial intelligence system without express authorization.
That said, Udio decided not to prolong the conflict and began talks with Warner, which led to an out-of-court settlement agreement a few months later.
Interestingly, the resolution did not focus solely on ending the lawsuit. According to the information released, Warner Music and Udio not only closed the legal chapter, but also took an unexpected step, with both companies announcing the joint launch of an AI-based subscription platform, scheduled for release in 2026.
What is this new platform and how does it work?
According to Reuters, this platform will work with models trained exclusively with properly authorized music, that is, with repertoires that have formal licenses and the participation of artists, composers, and producers represented by the record label itself. The idea is for the project to combine technological innovation without infringing on copyright.
The idea behind this new platform is to offer users the possibility of creating songs, remixes, or complete versions using voices inspired by real artists or classic musical styles, but always with the necessary authorizations required.
It was also revealed that Warner has established that artists’ participation in the new platform will not be automatic, but voluntary. In other words, each performer will be able to decide whether or not to allow their name, voice, or any identifiable feature to be used by artificial intelligence to generate new works.
This “opt-in” mechanism is significant because it recognizes that artistic identity is a protected asset and that its use requires consent.
Warner’s decision to transform litigation into an alliance is, in reality, a sign of how the industry is beginning to visualize how it will apply artificial intelligence in the future.
In fact, millions of users currently produce content on a daily basis, often without realizing that they are using platforms that have been trained with information we have on the internet or information that is readily available to us.
Ultimately, the information in the media is used to train artificial intelligence systems. In this case, Warner decided to license and participate, earning revenue in exchange for authorizing Udio to use its repertoire to train its platform.
For those of us who work in intellectual property, this case is a perfect example of the transition we are experiencing, precisely because of the rise of AI. In fact, there are many companies that are developing their products based on AI, and often these platforms are trained with protected material.
This conflict highlights the need for companies operating with AI to carefully review their licensing agreements, data sources, and technological development clauses.
Works subject to copyright cannot be freely used as input for AI. And if they are used, there must be not only a license, but a license that explicitly covers use for training, derivative creation, integration into algorithms, and commercial exploitation of the results.
It is very likely that Warner Music is paving a path that other large companies will follow, where AI ultimately ceases to be seen as a threat and begins to be viewed as a commercial ally that can be useful for new licensing and exploitation models. Ultimately, it is not about replacing creators or authors, but about finding a way for human creativity and technological innovation to coexist, while always respecting intellectual property rights.
For more information on these topics, please contact our Intellectual and Industrial Property Group:
Eugenio Gormáz | Partner | egormaz@az.cl
Carlos Lazcano | Senior Associate | clazcano@az.cl
Fernanda Rodríguez | Associate | frodriguez@az.cl
Esteban Orhanovic | Associate | eorhanovic@az.cl
Matías Selamé | Associate | matiasselame@az.cl
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