Industry Jul 24, 2026

AFM Claims 'New Use' Clause Covers AI Income

In short

US musicians’ union AFM reckons a ‘new use’ clause in its agreement with the labels means Warner and Universal should be sharing income for their Udio deals with its members.

Originally published by Complete Music Update
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AFM Claims 'New Use' Clause Covers AI Income

The American Federation of Musicians (AFM) asserts that a "new use" clause in its agreement with record labels applies to income generated from AI music platforms like Udio. The union argues that major labels, including Warner and Universal, should share this revenue with their musician members. The AFM considers the labels' opposing interpretation of the clause to be "nonsensical." Originally reported by Complete Music Update.