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AFM Drops Warner Music Parent From AI Suit, but Warner Records Pay Claims Continue

The union’s filing removes Warner Music Group Corp. without prejudice after an amended complaint named Warner Records instead. The central contract dispute remains whether AI licensing revenue must be shared with musicians.

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AFM Drops Warner Music Parent From AI Suit, but Warner Records Pay Claims Continue

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The American Federation of Musicians has dropped Warner Music Group’s parent company from its AI lawsuit, but the dispute over musician pay is still moving forward. In an amended complaint filed in late July, the union replaced Warner Music Group Corp. with Warner Records, while also naming Atlantic. The parent company was voluntarily dismissed in New York federal court, without prejudice, meaning the filing does not resolve the underlying dispute. No reason was given for the dismissal. The case began in June, when AFM sued Warner and Universal Music Group over alleged licensing of performers’ sound recordings to the AI platforms Suno and Udio without notice or compensation for union members. The key issue is a “new use” provision in the existing collective bargaining agreement. AFM argues that licensing recordings to AI companies counts as a new use, so revenue from those deals should be shared with the musicians whose performances appear in the recordings. Warner Music Group had argued that its parent company did not sign the labor agreement, did not license Suno or Udio, and was therefore the wrong defendant. The amended complaint shifts the Warner claims to the label entities AFM identifies instead. Digital Music News has reported Warner deals with Suno and Udio, but the live case now names Warner Records and Atlantic—not the parent company. The next question is whether the contract’s new-use language actually covers AI licensing revenue, and whether it creates a payment obligation to AFM members.

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AFM’s amended complaint keeps the Warner-related compensation dispute alive while removing Warner Music Group Corp. as a defendant. The union now names Warner Records and Atlantic, arguing that AI licensing of members’ sound recordings falls under the collective bargaining agreement’s “new use” provision. Warner Music Group was dismissed without prejudice, with no reason given; it argued the parent neither signed...

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    AFM’s June lawsuit also named Universal Music Group over alleged unnotified and uncompensated licensing to Suno and Udio.

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    A late-July amendment substituted Warner Records for Warner Music Group Corp.; the broader litigation remains active.

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    The parent company’s dismissal does not resolve whether AI licensing triggers payment obligations to musicians.

The American Federation of Musicians has removed Warner Music Group Corp. from its lawsuit over AI recording licenses, but the fight over musician compensation remains alive. The union’s amended complaint now targets Warner Records and Atlantic in a dispute over whether recordings licensed to AI companies trigger duties under an existing labor agreement.

AFM voluntarily dismissed its claims against Warner Music Group Corp. in New York federal court. The dismissal applies only to the parent company and was entered without prejudice. In late July, AFM amended its complaint to substitute Warner Records for Warner Music Group Corp.; AFM counsel has confirmed the broader lawsuit remains active.

The case began with AFM’s allegation that Warner and Universal licensed performers’ sound recordings to AI companies without informing or compensating union members. It centers on the collective bargaining agreement’s new use provision, a contract term the parties dispute in the context of AI licensing.

AFM’s position is that AI licensing revenue from Warner Music and Universal Music is covered by the labor agreement and should be shared with its musicians. The lawsuit therefore is not only about whether labels can make AI licensing arrangements. It asks whether those arrangements create payment obligations to the musicians whose performances appear in the licensed recordings.

Warner Music Group Corp. contested its place in the case on corporate and contractual grounds. It argued that the parent did not sign the AFM labor agreement, did not sue Suno or Udio, and did not license either AI platform. That argument focused on the identity of the defendant, while AFM’s amended complaint shifted the Warner claims to the Warner Records label entity.

Digital Music News reported that Warner Music has deals with Suno and Udio. But the continuing litigation names Warner Records and Atlantic, not Warner Music Group Corp. The entity substitution matters because the remaining contract claims will proceed against the companies AFM now identifies as the relevant Warner defendants.

The dismissal filing gave no reason for removing Warner Music Group Corp. and did not resolve the remaining claims. The live question is whether the new use provision reaches revenue from AI licenses and, if it does, whether AFM musicians are entitled to a share.

Sources

  1. digitalmusicnews.comAFM Drops Its AI Lawsuit Against 'Warner Music Group Corp.'
  2. news.bloomberglaw.comUnion Ends Litigation Against Warner Music Over AI Recordings