Major labels v. Suno and Udio

Summary

This case involves 5 key legal issues related to AI copyright and training data usage.

Analysis Date: 2026-01-02

What's Next

Discovery ongoing.

Possible Outcomes

Plaintiff (Major labels) wins
If major labels win, it could set a precedent classifying the use of copyrighted music for AI training as copyright infringement rather than fair use. This could lead to damages of $150,000 per infringement, totaling millions depending on the number of songs involved [14]. AI companies like Suno and Udio may need to secure licenses for training data, increasing costs and limiting competition with human artists [20]. Additionally, the ruling could prompt tortious interference claims from affected artists, as AI-generated music might undermine their market [18]. Key legal questions about transformative use and commercial fair use would remain unresolved, leaving ambiguity in how these concepts apply to AI training [17, 19]. This outcome could also impact data governance and compliance with international copyright laws in various jurisdictions [20].
Defendant (Suno et al) wins
If Suno and Udio win, it would mark a significant victory for AI companies, supporting the notion that using copyrighted music for training constitutes transformative fair use. This could transform the music industry, enabling AI-generated music to thrive without hefty licensing fees [19]. However, it may also concern human artists about the devaluation of their work and market disruption from an influx of AI-generated music [15]. The court's decision would leave questions about the boundaries of fair use, especially regarding the commercial nature of AI outputs and their transformative qualities [16]. Additionally, issues surrounding privacy and data governance would remain unclear, particularly if user data is mishandled during AI training [19]. This outcome could prompt a reevaluation of copyright law in relation to emerging technologies, potentially leading to new legal standards [20].

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