News from Bloomberg suggests that the legal battles between AI music generation startups and major record labels could be nearing an end.

Suno and Udio share a few similarities; both are startups that let users generate songs from text prompts using AI technology, and both are involved in lawsuits initiated by Sony Music, Universal Music Group, and Warner Records (represented by the RIAA). But, alleged licensing talks may mean that any legal disputes could soon be put to bed.

Last year, the RIAA sued both companies because it alleges that both companies trained their AI models on copyrighted music without proper licenses. This topic has been sparking outcry and debate in both the US and the UK, largely based on government approaches to regulation.

In its defence, Suno claimed the training of AI models on copyrighted music fell under fair use, however, the music industry was quick to vehemently reject this notion.

Now, according to Bloomberg, Sony Music, UMG, and Warner Records are looking to make a deal with Suno and Udio. The major labels are seeking license fees, along with “a small amount of equity” in both startups. The Bloomberg report cites people close to the discussions, although the sources apparently “declined to be identified because the talks could fall apart.”

While talks are in progress, that doesn’t necessarily mean a resolution will be reached easily and quickly. The talks are surely complex, as the Bloomberg report points out. The labels want “greater control” over how their work is used, whilst the AI music companies are focused on the “flexibility to experiment”. Additionally, the startups are seeking a deal that is reasonable and makes financial sense for companies of their position.

At the moment, there isn’t much more information around these talks. Bloomberg did reach out to both Suno and Udio, but neither responded to the requests for comment. All three major labels also declined to comment.

Get more music industry news and updates by checking out the RouteNote blog.