Independent music licensing group Merlin has partnered with artificial intelligence music platform Udio to license recordings for training AI models.
The partnership follows settlements Udio reached with Universal Music Group in October and Warner Music Group in November.
Both major music companies had sued Udio for copyright infringement but dropped their lawsuits after reaching licensing agreements for an AI music platform Udio plans to launch this year.
The latest agreement with Merlin allows Udio to develop AI systems using music from Merlin members who choose to participate, with compensation flowing back to those labels and artists, according to a press release on Tuesday (January 20).
The deal includes terms intended to protect what the companies called “the value of human artistry.”
Charlie Lexton, CEO of Merlin, said: “As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music.
“For some time, Merlin and Udio have been engaged in conversations focussed on a foundation of consent and fair remuneration. We are excited by Udio’s vision and how they clearly respect and value our members and their artists.”
“As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music.”
Charlie Lexton, merlin
Lexton assumed the CEO role at Merlin at the start of the year, succeeding Jeremy Sirota, who stepped down at the end of 2025 after six years at the company.
Merlin represents independent labels across over 70 countries that collectively account for 15% of global recorded music sales. The organization negotiates digital licensing deals on behalf of members with platforms including Spotify, Apple Music, Meta and YouTube.
Andrew Sanchez, Co-Founder and CEO of Udio, said independent artists “are the driving force of this partnership”.
Added Sanchez: “By teaming up with Merlin, we’re ensuring they maintain control over their work and are compensated for their creativity.
“Together, we’re building a platform that gives fans and creators unmatched tools, real power and a deeper connection to the music they love. We’re not just imagining the future of music creation — we’re making sure independent artists are helping us lead it.”
The agreements mark a shift for Udio as it moves from legal battles with record companies toward commercial relationships with the music industry.
“We’re not just imagining the future of music creation — we’re making sure independent artists are helping us lead it.”
Andrew Sanchez, Udio
The Recording Industry Association of America (RIAA), on behalf of all three major record companies, sued Udio and rival AI platform Suno for “mass infringement” of copyright in mid-2024.
Warner Music settled its portion of the litigation with Suno in November, but UMG and Sony Music continue to pursue their cases against that company. Denmark’s Koda and Germany’s GEMA are also suing Suno.
Meanwhile, Merlin and Udio said they would collaborate on what they described as new forms of creative expression, although didn’t provide details.
Lexton said: “Our partnership illustrates that Merlin is committed to participating in shaping the opportunities AI promises, rather than simply reacting to its development.”
Udio recently posted a job listing for a Head of Artist Partnerships based in Los Angeles or New York to manage relationships with artists, managers, labels, and publishers.
According to the listing, the role will focus on expanding participation in Udio’s Artist Platform and will involve working with what the company called “top-tier artists and industry leaders.” The hire will “define and lead how artists engage with Udio at a pivotal moment in the company’s growth,” the posting said.
Udio is backed by investors including a16z, Redpoint, Hanwha, will.i.am, Steve Stoute, Kevin Wall and more.
For Merlin, the Udio deal marks its latest with an AI company after striking a partnership with AI audio company ElevenLabs for its Eleven Music platform that is said to generate “studio-grade music” from “natural language prompts.”
At the time, former Merlin CEO Jeremy Sirota said Merlin’s partnership with ElevenLabs “demonstrates that music rightsholders can negotiate thoughtful, forward-looking agreements with AI companies.”
Music Business Worldwide
