On Wednesday (Oct. 29), Universal Music Group came to a landmark agreement with AI music company Udio. The deal ends UMG’s involvement in the lawsuit against Udio, which it filed last summer with the two other major music companies — Sony Music and Warner Music Group. In the lawsuit, the labels accused Udio of infringing on its copyrighted sound recordings to train its AI music model, which can generate realistic songs in seconds.

Wednesday’s deal went beyond a “compensatory” legal settlement for UMG and Udio, as stated in the press release; it also provides licensing agreements for UMG’s recorded music and publishing assets, creating a new revenue stream for the company and its signees. Participating UMG artists and songwriters will be rewarded for both the training process of the AI mod

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