Sony has filed a new lawsuit against Udio, significantly expanding the scope of their copyright dispute over AI music training practices. The complaint now includes more than 30,000 recordings, up from 333 in the original case, with potential damages rising from $50 million to $4.5 billion. Sony states that access to Udio's training data during legal discovery revealed the much larger scale of alleged copyright infringement than was initially apparent.

The legal dispute centres on whether using copyrighted works to train AI systems constitutes fair use. Udio contends that its training process was transformative and therefore protected, whilst Sony argues this defence is undermined by the existence of licensing agreements other companies have negotiated with Udio for AI training. Sony is now the only major record label still pursuing legal action against Udio in court, as Universal Music Group and Warner Music Group have already settled with the company and established frameworks requiring pre-cleared training data.