Udio and GRAI Adopt UMG and Liquidax-Backed AI Music Patents
Music IP Holdings (MIH), a company formed by Universal Music Group and Liquidax Capital, has announced that AI music start-ups Udio and GRAI are the first to license patents from its portfolio for use in their AI products. The move matters because it establishes a framework through which UMG and its partners can be compensated whenever AI firms use these patents, creating a new revenue stream while positioning the licences as a way to build "responsible" AI music tools that protect artists' rights.
MIH holds more than 24 patents and has over 50 pending, covering areas such as moderation, watermarking, identification tagging, authorisation, and licensed distribution and payment. The patents will support licensed AI services including covers, remixes and interactive music experiences, though it has not been disclosed which specific patents Udio and GRAI have adopted. Udio, led by chief executive Andrew Sanchez, called it "a genuine inflection point for AI and music," while GRAI, a forthcoming social streaming service founded by the team behind Vochi and backed by Khosla Ventures and Inovo VC, said the patents would ensure artists are credited and paid whenever their work is used.
- MIH, backed by UMG and Liquidax, licenses AI music patents to Udio and GRAI
- Framework covers moderation, watermarking, licensing and payment for AI music tools
- Deal creates new revenue stream while aiming to protect artists' rights
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Music IP Holdings (MIH) is a company set up jointly by Universal Music Group, the world's largest record label, and Liquidax Capital, an investment firm. MIH's purpose is to hold and license patents related to how artificial intelligence handles music, covering things like spotting copyrighted material, tagging who created it, watermarking AI-generated tracks, and managing payments to rights holders.
Udio and GRAI are both AI music companies. Udio, run by chief executive Andrew Sanchez, makes tools that let people generate music using AI. GRAI is a social music-streaming service that has not yet launched, founded by the team behind the app Vochi and backed by venture capital firms Khosla Ventures and Inovo VC.
This matters because the AI music industry has faced criticism and legal disputes over using artists' work without permission or payment. By licensing patents from a major label-backed body like MIH, AI companies can build tools designed to track and pay artists when their music is used, while UMG and its partners gain a new way to earn money from the growing AI music sector.