AI & Music

The Settlement Wave: Who Signed, Who's Still Suing

By the Starchild Music team · September 24, 2026 · 5 min read

A chessboard where half the pieces are handshakes and half are gavels

The short answer

Warner settled with Suno (Nov 2025) and Universal with Udio (Oct 2025), converting lawsuits into licensing deals. Sony Music alone is still litigating both cases toward trial, and independent artists have filed separate class actions arguing the label settlements left working musicians uncompensated.

Two years after the record industry sued the major AI music generators for training on unlicensed catalogs, the united front has split into three camps: those who settled and licensed, those still suing, and the artists asking why nobody consulted them.

The current map

Warner Music Group settled with Suno in late November 2025, dropping its suit in exchange for a licensing partnership under which Suno builds models trained only on licensed music — with artists and songwriters, per the announced terms, keeping control over whether their names, voices, and compositions appear in AI-generated output. Universal settled with Udio in October 2025 on a similar arc. Sony Music, alone among the majors, settled with no one — it continues pushing both cases toward trial, and joined Universal in the fresh September suit over Suno's v6 training data.

Forbes' analysis framed the settlement path bluntly: launch on unlicensed data, get sued, settle into a license — infringement as a business-development funnel. Whether courts eventually price that path higher than a license would have cost is the question Sony's holdout keeps alive.

What each side bought

The settling labels converted litigation risk into recurring AI revenue and a seat at the model-design table. The AI companies bought legitimacy — a word that now moves enterprise deals and app-store policy. What neither side bought was closure: independent artists have filed their own class actions arguing the label deals protect catalogs, not creators, which is its own story.

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