Universal Music Group has asked a federal court to dismiss a case filed by the American Federation of Musicians alleging the company licensed sound recordings to artificial intelligence platform Udio without compensation or credit. The dispute turns on how to interpret the Sound Recording Labour Agreement between the parties and whether it obligates payment when recordings are used to train AI models.

UMG argues the contract does not establish a payment rate for AI training purposes and therefore creates no payment obligation under its existing terms. The union contends that using music for generative AI constitutes a 'new use' category that should trigger compensation requirements. Pre-trial discussions suggest both sides agree no rate currently exists for this application, with the core disagreement being whether the contract mandates negotiation of terms or allows UMG to avoid payment obligations entirely.