AFM Opposes Labels’ Bid to Dismiss AI Musician-Pay Case

The filing asks a New York federal court to keep alive a contract fight over whether label licensing revenue from AI music deals must be shared with session musicians.

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AFM Opposes Labels’ Bid to Dismiss AI Musician-Pay Case
AFM Opposes Labels’ Bid to Dismiss AI Musician-Pay Case

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The American Federation of Musicians is fighting to keep its AI music-pay lawsuit alive, opposing the record labels’ request to dismiss it in federal court. The union says its labor contract can plausibly require compensation when recordings by session musicians are licensed for generative AI, even though the agreement does not include a separate AI deal. The case is before the Southern District of New York, and the court has not ruled on dismissal. At the center is Article twenty-one A of the Sound Recording Labor Agreement. It covers recordings used outside the agreement, but the two sides read that language very differently. AFM argues that AI licensing can qualify as a compensable new use. Universal Music Group and Warner Records argue the provision does not reach AI media without a standalone agreement. The dispute concerns recordings from label catalogs later licensed to Suno and Udio. AFM alleges the labels did so without paying musicians or notifying the union. According to the union’s case summary, Warner Records and Atlantic Recording settled with both AI companies, while Universal settled with Udio. AFM says the contract does not provide a precise AI payment formula, but that existing session, streaming, and sampling rates could help calculate compensation if its interpretation wins. For now, surviving dismissal would only let the claim proceed. It would not establish that musicians are owed money. The immediate question is whether the court finds AFM’s reading plausible enough for the contract fight to continue.

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3 key points

AFM is asking a Southern District of New York judge to let its lawsuit against Universal Music Group, Warner Records, and Atlantic Recording continue, arguing that Article 21(a) covers generative-AI licensing as a compensable “new use” of musicians’ recordings. The labels dispute that reading. The case could determine whether performers share revenue from catalog deals with Suno and Udio, but surviving dismissal...

  1. 01

    AFM filed June 5; a July filing corrected Warner’s defendant name to Warner Records, the labor agreement’s signatory.

  2. 02

    Warner Records and Atlantic settled with Suno and Udio; Universal settled with Udio, according to AFM’s case summary.

  3. 03

    Article 21(a) addresses recordings used outside the agreement, but the parties sharply disagree over its AI reach.

Musicians could still press for a share of money from record-label AI licensing deals after the American Federation of Musicians opposed efforts to dismiss its lawsuit. The union argues that its labor contract can plausibly treat generative-AI licensing as a compensable new use of recordings.

The dispute is not over whether AI companies may use the labels’ catalogs. It asks whether musicians who performed on recordings later licensed to Suno and Udio are entitled to compensation from those arrangements. AFM alleges the labels licensed catalogs without compensating musicians or notifying the union.

One clause, two sharply different readings

At the center is Article 21(a) of the Sound Recording Labor Agreement, which addresses recordings used for purposes outside the agreement. AFM says the clause is ambiguous, and that its interpretation need only be plausible for the case to survive dismissal. Under the union’s reading, an AI use can create a payment duty even without a standalone agreement governing generative-AI platforms.

The rate question comes later, AFM says

The agreement has no precise formula for AI compensation. AFM nevertheless contends that uncertainty over the amount should not erase potential liability at this stage. It says existing session, streaming and sampling rates could help inform a calculation if its interpretation ultimately prevails.

What AFM says could guide a payment calculation

  • Session rates in the existing labor agreement.
  • Streaming rates already set under AFM agreements.
  • Sampling rates that could inform compensation.

The licenses behind the lawsuit

According to AFM’s case summary, Warner Records and Atlantic Recording Corp. settled with both Suno and Udio, while Universal settled with Udio. The union filed the lawsuit in the Southern District of New York on June 5. A July filing corrected the Warner defendant’s name to Warner Records, the agreement’s signatory.

The court had not yet ruled on the dismissal dispute. Allowing the suit to continue would not establish that musicians are owed money; it would allow AFM to continue pursuing its reading of the agreement and the labels’ licensing obligations.

Sources

  1. afm.orgSummary of the AFM v. Universal, Warner, and Atlantic “New Use” Litigation
  2. musicindustryweekly.comMusicians' Union Pushes Back on UMG, Warner Bid to Toss AI Licensing Lawsuit - Music Industry Weekly
  3. digitalmusicnews.comAFM Refutes UMG & WMG Dismissal Arguments in Gen AI Lawsuit

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