Independent music licensing group Merlin has partnered with AI music platform Udio to license recordings for training AI models. This follows Udio’s prior settlements with Universal Music Group (UMG) in October and Warner Music Group (WMG) in November, after both majors had sued Udio for copyright infringement but dropped lawsuits upon reaching licensing agreements. The new Merlin deal allows Udio to develop AI systems using music from Merlin members who opt in, with compensation returning to the participating labels and artists, and includes provisions to protect “the value of human artistry, ” according to a January 20 press release. Merlin CEO Charlie Lexton emphasized the importance of partnering with entities that respect artists and licensing requirements, highlighting ongoing talks with Udio built on consent and fair remuneration. Lexton began his role in early 2026, succeeding Jeremy Sirota, who led Merlin for six years before stepping down at the end of 2025. Merlin represents independent labels from over 70 countries, collectively responsible for 15% of global recorded music sales, and handles digital licensing with platforms like Spotify, Apple Music, Meta, and YouTube. Udio CEO Andrew Sanchez stated that independent artists are central to this partnership, ensuring they retain control over their work and receive fair compensation. He described the collaboration as building a platform providing fans and creators powerful tools and stronger connections to music, making independent artists leaders in the evolving future of music creation.

This deal signals Udio’s shift from legal disputes with record companies toward commercial collaborations within the music industry. Previously, the Recording Industry Association of America (RIAA), representing all three major record labels, sued Udio and AI competitor Suno in mid-2024 for “mass infringement” of copyrights. Warner Music settled with Suno in November, while UMG and Sony continue litigation against Suno; Denmark’s Koda and Germany’s GEMA have also sued Suno. Meanwhile, Merlin and Udio plan to collaborate on new creative expressions, though details remain undisclosed. Lexton noted the partnership reflects Merlin’s proactive approach to shaping AI opportunities rather than merely responding to them. Udio recently advertised for a Head of Artist Partnerships position in Los Angeles or New York, aimed at expanding engagement with artists, managers, labels, and publishers on Udio’s Artist Platform, focusing on top-tier talent and industry leaders during a pivotal growth phase. Udio is supported by investors including a16z, Redpoint, Hanwha, will. i. am, Steve Stoute, and Kevin Wall. For Merlin, the Udio agreement represents another AI partnership following a deal with AI audio company ElevenLabs for its Eleven Music platform, which generates studio-quality music from natural language prompts. Former Merlin CEO Jeremy Sirota said the ElevenLabs deal shows that music rightsholders can reach thoughtful, forward-looking agreements with AI firms. (Source: Music Business Worldwide)