Sony Music Entertainment has intensified its legal conflict with AI music generator Udio by filing a second major lawsuit. The new complaint accuses the tech startup of unlawfully using over 30,000 copyrighted songs to train its generative AI models. This action significantly raises the stakes, with potential damages soaring into the billions and highlighting the central debate over AI's use of protected content.
Escalating Legal Battle
The complaint was filed in the US District Court for the Southern District of New York after a judge denied Sony's motion to add the new claims to its original case. This procedural decision prompted the label to initiate a separate, more expansive action against the AI company. The lawsuit involves Sony Music Entertainment and nine of its affiliated record labels, demonstrating a united front.
Sony claims it uncovered the extent of the infringement during the discovery phase of the initial lawsuit, which began in June 2024. Using audio fingerprinting technology, the label identified hundreds of thousands of its recordings within Udio's training data. The 30,117 works cited in the new suit represent only a fraction of the total alleged copyright violations.
The Heart of the Dispute
At the core of Sony's argument is the assertion that Udio copied its sound recordings without permission to build a commercial product. The lawsuit alleges that many of these files were obtained by "stream ripping" from platforms like YouTube, circumventing technological protections. This specific claim forms the basis for an additional charge under the Digital Millennium Copyright Act.
In response to the initial litigation, Udio has acknowledged using a vast amount of audio recordings, likely including Sony's, for training purposes. The startup, founded by former Google DeepMind researchers, contends that its process constitutes "fair use" under copyright law. This defense argues that the use is transformative and creates a new product without directly competing with the original works.
A Shifting Industry Landscape
The legal landscape has evolved since the original lawsuit, which initially included Universal Music Group and Warner Music Group as co-plaintiffs. Both of these major labels have since settled their disputes with Udio, signing licensing agreements with the AI company. This strategic shift leaves Sony as the sole major music corporation actively pursuing litigation against Udio.
Sony is leveraging these recent licensing deals to bolster its legal position against Udio's "fair use" claim. The label argues that the existence of these agreements proves a clear and functioning market for licensing training data, which undermines the defense. Sony has stated it is not opposed to AI but insists that such innovation must respect copyright through established licensing frameworks.
With potential statutory damages reaching up to $4.5 billion, this lawsuit represents a critical juncture for the music and technology industries. The court's decision will likely set a significant precedent regarding the application of "fair use" to generative AI training data. The outcome will profoundly influence the future relationship between AI developers and copyright holders, shaping the economics of creative content for years to come.