A federal judge in Illinois has refused to dismiss a copyright infringement lawsuit brought by ten independent musicians against Udio, an artificial intelligence music generation platform. While denying the company's motion to dismiss, the court granted Udio's alternative request to transfer the case to the Southern District of New York, where the company conducts its primary operations. The decision permits the artists' claims to advance, though Udio retains the opportunity to file a fresh dismissal motion once litigation resumes in the new venue.

The lawsuit, initiated in October 2025 and revised in January 2026, charges Udio with systematically copying and storing the plaintiffs' musical works without authorisation to train its commercial music-generation system. The named plaintiffs—including a firefighter musician, composers, songwriters, and a recording band—contend the company accumulated unauthorised copies far exceeding any genuine technical requirement. Their complaint spans fourteen counts encompassing copyright infringement, Digital Millennium Copyright Act violations, and state law claims relating to biometric information and publicity rights. The artists have distinguished their case from simultaneous litigation by major record labels, emphasising that their action addresses the distinctive exposure faced by independent creators to AI-facilitated copyright misuse.