AI Firms Blast Lawsuit From Music Giants: ‘Labels See a Threat to Their Market Share’

AI music firms Suno and Udio are firing back with their first responses to sweeping lawsuits filed by the major record labels, arguing that they were free to use copyrighted songs to train their models and claiming the music industry is abusing intellectual property to crush competition.

In legal filings on Thursday, the two firms admitted to using proprietary materials to create their artificial intelligence, with Suno saying it was “no secret” that the company had ingested “essentially all music files of reasonable quality that are accessible on the open Internet.”

But both companies said that such use was clearly lawful under copyright’s fair use doctrine, which allows for the reuse of existing materials to create new works.

“What Udio has done — use existing sound recordings as data to mine and analyze for the purpose of identifying patterns in the sounds of various musical styles, all to enable people to make their own new creations — is a quintessential ‘fair use,’” Udio wrote in its filing. “Plaintiffs’ contrary vision is fundamentally inconsistent with the law and its underlying values.”

The filings, lodged by the same law firm (Latham & Watkins) that reps both companies, go beyond the normal “answer” to a lawsuit — typically a sparse document that simply denies each claim. Instead, Suno and Udio went on offense, with extended introductions that attempt to frame the narrative of a looming legal battle that could take years to resolve.

In doing so, they took square aim at the major labels (Universal Music Group, Warner Music Group and Sony Music Entertainment) that filed the case in June — a group that they said “dominates the music industry” and is now abusing copyright law to maintain that power.

“What the major record labels really don’t want is competition,” Suno wrote in its filing. “Where Suno sees musicians, teachers and everyday people using a new tool to create original music, the labels see a threat to their market share.”

Suno and Udio have quickly become two of the most important players in the emerging field of AI-generated music. Udio has already produced what could be considered an AI-generated hit with “BBL Drizzy,” a parody track popularized with a remix by super-producer Metro Boomin and later sampled by Drake himself. And as of May, Suno had raised a total of $125 million in funding to create what Rolling Stone called a “ChatGPT for music.”

In June, the major labels sued both companies, claiming they had infringed copyrighted music on an “unimaginable scale” to train their models. The lawsuits accused the two firms of “trampling the rights of copyright owners” as part of a “mad dash to become the dominant AI music generation service.”

The case followed similar lawsuits filed by book authors, visual artists, newspaper publishers and other creative industries, which collectively pose what could be a trillion-dollar legal question: Is it infringement to use vast troves of proprietary works to build an AI model that spits out new creations? Or is it just a form of legal fair use, transforming all those old works into something entirely new?

In Thursday’s response, Suno and Udio argued unequivocally that it was the latter. They likened their machines to a “human musician” who had played earlier songs to learn the “building blocks of music” — and then used what they had learned to create entirely new works in existing styles.

“Those genres and styles — the recognizable sounds of opera, or jazz, or rap music — are not something that anyone owns,” Suno wrote in its filing. “Our intellectual property laws have always been carefully calibrated to avoid allowing anyone to monopolize a form of artistic expression, whether a sonnet or a pop song.”

The lawsuit from the labels, Suno and Udio say, are thus an abuse of copyright law, aimed at claiming improper ownership over “entire genres of music.” They called the litigation an “attempt to misuse IP rights to shield incumbents from competition and reduce the universe of people who are equipped to create new expression.”

Both filings hint at how Suno and Udio will make their fair use arguments. The two companies say the cases will not really turn on the “inputs” — the millions of songs used to train the models — but rather on the “outputs,” or the new songs that are created. While the labels are claiming that the inputs were illegally copied, the AI firms say the music companies “explicitly disavow” that any output was a copycat.

“That concession will ultimately prove fatal to plaintiffs’ claims,” Suno wrote in its filing. “It is fair use under copyright law to make a copy of a protected work as part of a back-end technological process,
invisible to the public, in the service of creating an ultimately non-infringing new product.”

A spokeswoman and an attorney for the labels did not immediately return a request for comment.