{"id":249138,"date":"2026-01-20T08:02:08","date_gmt":"2026-01-20T08:02:08","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=249138"},"modified":"2026-01-20T08:07:26","modified_gmt":"2026-01-20T08:07:26","slug":"udio-strikes-ai-licensing-deal-with-merlin-after-umg-and-warner-music-settlements","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/udio-strikes-ai-licensing-deal-with-merlin-after-umg-and-warner-music-settlements\/","title":{"rendered":"Udio strikes AI licensing deal with Merlin after UMG and Warner Music settlements"},"content":{"rendered":"<p class=\"p1\">Independent music licensing group Merlin has partnered with artificial intelligence music platform Udio to license recordings for training AI models.<\/p>\n<p class=\"p1\">The partnership follows settlements Udio <a href=\"https:\/\/www.musicbusinessworldwide.com\/universal-music-settles-udio-lawsuit-strikes-deal-for-licensed-ai-music-platform\/\" target=\"_blank\" rel=\"noopener\">reached<\/a> with <b>Universal Music Group<\/b> in October and <b>Warner Music Group<\/b> in November.<\/p>\n<p class=\"p1\">Both major music companies had sued Udio for copyright infringement but dropped their lawsuits after reaching licensing agreements for an AI music platform Udio plans to launch this year.<\/p>\n<p class=\"p1\">The latest agreement with <b>Merlin<\/b> allows Udio to develop AI systems using music from Merlin members who choose to participate, with compensation flowing back to those labels and artists, according to a press release on Tuesday (January 20).<\/p>\n<p class=\"p1\">      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__tweeny hidden-xs hidden-ms hidden-sm\" data-loaded=\"no\" data-sizes=\"992 1200 1440\" data-name=\"628x90 Sponsor banner #5 (992+1200+1440)\" data-params=\"dfp_sponsor5_628\" id=\"dfp_sponsor5_628\"><\/div>      <div class=\"mb-advert mb-advert__banner mb-advert__banner--inline hidden-xs hidden-sm hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"480\" data-name=\"468x60 Sponsor banner #5 (480)\" data-params=\"dfp_sponsor5_468\" id=\"dfp_sponsor5_468\"><\/div>      <div class=\"mb-advert mb-advert__mobile mb-advert__mobile--inline hidden-ms hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"320 768\" data-name=\"300x50 Sponsor banner #5 (320+768)\" data-params=\"dfp_sponsor5_300\" id=\"dfp_sponsor5_300\"><\/div>      <\/div>      <\/p>\n<p class=\"p1\">The deal includes terms intended to protect what the companies called \u201cthe value of human artistry.\u201d<\/p>\n<p class=\"p1\"><b>Charlie Lexton<\/b>, CEO of Merlin, said: \u201cAs AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music.<\/p>\n<p class=\"p1\">\u201cFor some time, Merlin and Udio have been engaged in conversations focussed on a foundation of consent and fair remuneration. We are excited by Udio\u2019s vision and how they clearly respect and value our members and their artists.\u201d<\/p>\n<blockquote>\n<p class=\"p1\">\u201cAs AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music.\u201d<\/p>\n<p><span style=\"color: #000000;\">Charlie Lexton, merlin<\/span><\/p><\/blockquote>\n<p class=\"p1\">Lexton <a href=\"https:\/\/www.musicbusinessworldwide.com\/charlie-lexton-appointed-ceo-of-merlin\/\" target=\"_blank\" rel=\"noopener\">assumed<\/a> the CEO role at Merlin at the start of the year, succeeding <b>Jeremy Sirota<\/b>, who <a href=\"https:\/\/www.musicbusinessworldwide.com\/jeremy-sirota-to-exit-as-merlin-ceo-at-end-of-2025\/\" target=\"_blank\" rel=\"noopener\">stepped down<\/a> at the end of 2025 after six years at the company.<\/p>\n<p class=\"p1\">Merlin represents independent labels across over 70 countries that collectively account for 15% of global recorded music sales. The organization negotiates digital licensing deals on behalf of members with platforms including <a href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-and-merlin-ink-multi-year-global-licensing-deal\/\" target=\"_blank\" rel=\"noopener\"><strong>Spotify<\/strong><\/a>, <strong>Apple<\/strong> <strong>Music<\/strong>, Meta <strong>and<\/strong> <strong>YouTube<\/strong>.<\/p>\n<p class=\"p1\"><b>Andrew Sanchez<\/b>, Co-Founder and CEO of Udio, said independent artists \u201care the driving force of this partnership\u201d.<\/p>\n<p class=\"p1\">      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #1\" data-params=\"dfp_spu1\" id=\"dfp_spu1\"><\/div>      <\/div>      <\/p>\n<p class=\"p1\">Added Sanchez<b>: <\/b>\u201cBy teaming up with Merlin, we\u2019re ensuring they maintain control over their work and are compensated for their creativity.<\/p>\n<p class=\"p1\">&#8220;Together, we\u2019re building a platform that gives fans and creators unmatched tools, real power and a deeper connection to the music they love. We\u2019re not just imagining the future of music creation \u2014 we\u2019re making sure independent artists are helping us lead it.&#8221;<\/p>\n<p class=\"p1\">The agreements mark a shift for Udio as it moves from legal battles with record companies toward commercial relationships with the music industry.<\/p>\n<blockquote>\n<p class=\"p1\">&#8220;We\u2019re not just imagining the future of music creation \u2014 we\u2019re making sure independent artists are helping us lead it.&#8221;<\/p>\n<p class=\"p1\"><span style=\"color: #000000;\"><b>Andrew Sanchez<\/b>, Udio<\/span><\/p>\n<\/blockquote>\n<p class=\"p1\">The <b>Recording Industry Association of America<\/b>\u00a0(RIAA), on behalf of all three major record companies,\u00a0<a href=\"https:\/\/www.musicbusinessworldwide.com\/major-record-companies-sue-ai-music-generators-suno-udio-for-mass-infringement-of-copyright\/\" target=\"_blank\" rel=\"noopener\">sued Udio and rival AI platform\u00a0<b>Suno<\/b><\/a>\u00a0for \u201cmass infringement\u201d of copyright in mid-2024.<\/p>\n<p class=\"p1\">Warner Music <a href=\"https:\/\/www.wmg.com\/news\/warner-music-group-and-udio-collaborate-to-build-a-new-licensed-music-creation-service\" target=\"_blank\" rel=\"noopener\">settled<\/a> its portion of the litigation with Suno in November, but UMG and Sony Music continue to pursue their cases against that company.\u00a0<a href=\"https:\/\/www.musicbusinessworldwide.com\/suno-sued-again-as-danish-cmo-koda-accuses-company-of-stealing-its-members-music-to-train-ai-model\/\" target=\"_blank\" rel=\"noopener\">Denmark\u2019s<b>\u00a0Koda<\/b><\/a><b>\u00a0<\/b>and\u00a0<a href=\"https:\/\/www.musicbusinessworldwide.com\/500m-valued-suno-hit-with-new-copyright-lawsuit-from-germanys-gema\/\" target=\"_blank\" rel=\"noopener\">Germany\u2019s\u00a0<b>GEMA<\/b><\/a> are also suing Suno.<\/p>\n<p class=\"p1\">      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #2\" data-params=\"dfp_spu2\" id=\"dfp_spu2\"><\/div>      <\/div>      <\/p>\n<p>Meanwhile, Merlin and Udio said they would collaborate on what they described as new forms of creative expression, although didn\u2019t provide details.<\/p>\n<p class=\"p1\">Lexton said: \u201cOur partnership illustrates that Merlin is committed to participating in shaping the opportunities AI promises, rather than simply reacting to its development.\u201d<\/p>\n<p class=\"p1\">Udio recently posted a<a href=\"https:\/\/www.musicbusinessworldwide.com\/ai-music-firm-udio-hiring-head-of-artist-partnerships-to-lead-negotiations-with-the-music-industry\/\" target=\"_blank\" rel=\"noopener\"> job listing<\/a> for a <b>Head of Artist Partnerships<\/b> based in Los Angeles or New York to manage relationships with artists, managers, labels, and publishers.<\/p>\n<p class=\"p1\">According to the listing, the role will focus on expanding participation in Udio&#8217;s <b>Artist<\/b> <b>Platform<\/b> and will involve working with what the company called \u201ctop-tier artists and industry leaders.\u201d The hire will &#8220;define and lead how artists engage with Udio at a pivotal moment in the company&#8217;s growth,&#8221; the posting said.<\/p>\n<p>Udio is backed by investors including<strong> a16z, Redpoint, Hanwha, will.i.am, Steve Stoute, Kevin Wall <\/strong>and more.<\/p>\n<p class=\"p1\">For Merlin, the Udio deal marks its latest with an AI company after <a href=\"https:\/\/www.musicbusinessworldwide.com\/eleven-music-new-ai-rival-to-suno-launches-with-merlin-kobalt-licensing-deals-in-the-bag\/\" target=\"_blank\" rel=\"noopener\">striking a partnership<\/a> with AI audio company <b>ElevenLabs<\/b> for its <b>Eleven Music<\/b> platform that is said to generate \u201cstudio-grade music\u201d from \u201cnatural language prompts.\u201d<\/p>\n<p class=\"p1\">At the time, former Merlin CEO Jeremy Sirota said Merlin\u2019s partnership with ElevenLabs \u201cdemonstrates that music rightsholders can negotiate thoughtful, forward-looking agreements with AI companies.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deal includes terms intended to protect what the companies called \u201cthe value of human artistry.\u201d<\/p>\n","protected":false},"author":38,"featured_media":249139,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[588,132081,269,418],"class_list":["post-249138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-merlin","tag-udio","tag-universal-music-group","tag-warner-music-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/249138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=249138"}],"version-history":[{"count":7,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/249138\/revisions"}],"predecessor-version":[{"id":249148,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/249138\/revisions\/249148"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/249139"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=249138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=249138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=249138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}