American Federation of Musicians Sues UMG and WMG Over AI Licensing Disputes

The American Federation of Musicians (AFM), representing session musicians, has filed a lawsuit against Universal Music Group (UMG) and Warner Music Group (WMG) for allegedly breaching their collective bargaining agreement by licensing members’ recordings to AI music companies without compensation. The lawsuit, filed on June 5, 2026, in Manhattan federal court, claims that UMG and WMG facilitated the use of musicians’ work by AI firms like Suno and Udio without adhering to contractual terms requiring payment for “new uses” of their recordings, according to a Reuters report.

The Lawsuit and Its Claims

The AFM alleges that UMG and WMG have failed to provide transparency about which recordings are being licensed to AI companies and have refused to share proceeds from these arrangements. “While the defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, they have refused to compensate the musicians whose work — created with their own instruments and through their talent, creativity, and hard work — is fed into AI machines for profit,” the lawsuit states, as reported by Reuters.

The dispute stems from 2024, when UMG, WMG, and Sony Music Entertainment sued Suno and Udio for allegedly training AI models on copyrighted recordings without permission. By late 2025, UMG and WMG reached settlements with the AI companies, allowing them to use licensed recordings for training new models. The labels claimed artists would be compensated if they opted into AI deals, though the AFM argues these agreements sidestep their members’ rights.

Industry Reactions and Next Steps

UMG responded to the lawsuit by emphasizing its “strong working relationship with the AFM” and stating it would resolve issues through ongoing collective bargaining negotiations. “We will continue to work to resolve any issues through these negotiations, as we have in the past,” a UMG spokesperson said, per Reuters. Warner Music Group did not immediately comment on the complaint, but a spokesperson for the label previously expressed disappointment in the AFM’s “unproductive action” amid negotiations, according to Billboard.

The AFM’s legal action highlights growing tensions in the music industry over AI’s role in content creation. As AI tools become more prevalent, questions about intellectual property, compensation, and contractual obligations remain unresolved. The outcome of this case could set a precedent for