Universal and Warner dispute AI deal interpretation with AFM

In June the American Federation Of Musicians sued Universal and Warner over their AI deals, insisting the majors should be sharing their AI money with the union’s members under its Sound Recording Lab

Universal and Warner have filed new court documents in response to a lawsuit by the American Federation of Musicians (AFM). The AFM sued the major labels in June, alleging that their artificial intelligence deals should result in shared revenue with the union’s members under the Sound Recording Labor Agreement. The labels are seeking to have the lawsuit dismissed, maintaining that a “new use” clause in their agreement with the AFM is unambiguous and does not encompass their AI agreements.

The legal dispute centers on the interpretation of the AFM’s agreement and whether it applies to revenue generated from the labels’ AI initiatives. Both parties are presenting their arguments in court filings as the case progresses. Originally reported by Complete Music Update.