Artificial intelligence song generation platform Udio said it would give its frustrated users 48 hours starting Monday to download their songs before the company shifts to a new business model to comply with a legal settlement.
The short reprieve comes after Udio on Wednesday said it had settled copyright infringement claims brought by Universal Music, a label with artists including Taylor Swift, Olivia Rodrigo, Drake and Kendrick Lamar.
AI companies
are now fighting so many copyright lawsuits that a tech industry lobby group, the Chamber of Progress, last week called on President Donald Trump to sign an executive order directing federal attorneys “to intervene in legal cases” to defend the industry's practice of building generative AI tools by feeding them on copyrighted works.
Citing more than 50 pending federal cases, the group asked for help stopping court fights leading to “potentially company-killing penalties” that threaten AI innovation. But artists have warned that AI tools built on their works also threaten their livelihoods.
In the biggest settlement so far, AI company Anthropic agreed to pay $1.5 billion — or $3,000 per book — to settle claims from authors who alleged the company illegally pirated nearly half a million of their works to train its chatbot.
Udio and Universal didn't disclose the financial terms of their new music licensing agreements. They also said they will team up on a new streaming platform.
As part of the agreement, Udio immediately stopped allowing people to download songs they’ve created, which sparked a backlash and apparent exodus among paying users.
“We know the pain it causes to you,” Udio later said in a post on Reddit's Udio forum, where users were venting about feeling betrayed by the platform’s surprise move and complained that it limited what they could do with their music.
Udio said it still must stop downloads as it transitions to a new streaming platform next year. But over the weekend, it said it will give people 48 hours starting at 11 a.m. Eastern time Monday to keep their “past creations.”
“Udio is a small company operating in an incredibly complex and evolving space, and we believe that partnering directly with artists and songwriters is the way forward,” said Udio's post.
The settlement deal was the music industry's first since Universal, along with Sony Music Entertainment and Warner Records, sued Udio and another AI song generator, Suno, last year over copyright infringement.
Udio and Suno pioneered AI song generation technology, which can spit out new songs based on prompts typed into a chatbot-style text box. Users, who don’t need musical talent, can merely request a tune in the style of, for example, classic rock, 1980s synth-pop or West Coast rap.
Record labels have accused the platforms of exploiting the recorded works of artists without compensating them.
In its lawsuit filed against Udio last year, Universal sought to show how specific AI-generated songs made on Udio closely resembled Universal-owned classics like Frank Sinatra’s “My Way,” The Temptations’ “My Girl," ABBA's “Dancing Queen” and holiday favorites like “Rockin’ Around the Christmas Tree” and “Jingle Bell Rock.”
A musician-led group, the Artist Rights Alliance, said Friday that the Universal-Udio settlement represents a positive step in creating a “legitimate AI marketplace” but raised questions about whether independent artists, session musicians and songwriters will be sufficiently protected from AI practices that present an “existential threat” to their careers.
“Licensing is the only version of AI’s future that doesn’t result in the mass destruction of art and culture," the group said. “But this promise must be available to all music creators, not just to major corporate copyright holders.”
