Warner Music Settles Suno Lawsuit and Sells Songkick

Warner Music Group (WMG) reached a legal settlement with AI music startup Suno on Tuesday, effectively ending its copyright infringement lawsuit against the company. Beyond resolving the legal dispute, the agreement establishes a partnership focused on developing licensed AI models while transferring ownership of a live music asset.

Strategic Asset Sale and Licensing

As part of the agreement, WMG confirmed the sale of Songkick to the AI startup for an undisclosed sum. The concert-discovery platform, which WMG purchased in 2017, will continue to operate as a destination for fans under its new ownership. This transaction follows the 2018 acquisition of Songkick’s ticketing division by Live Nation.

The collaboration introduces significant operational changes for Suno’s platform, including:

• Deployment of advanced, licensed AI models scheduled for next year.
• A transition to a paid-account requirement for downloading audio files.
• Restricting free-tier users to playback and sharing features only.

Artist Protection and Industry Impact

A core component of the deal grants WMG artists and songwriters—including major acts like Lady Gaga, The Weeknd, Coldplay, and Sabrina Carpenter—full authority over the use of their voices, likenesses, and compositions in AI-generated content. WMG CEO Robert Kyncl characterized the agreement as a “landmark pact” that balances rapid scaling with the protection of the creative community.

“We’ve seized this opportunity to shape models that expand revenue and deliver new fan experiences,” Kyncl stated in the official announcement.

A Shift in Music Industry AI Strategy

This settlement follows a similar resolution between WMG and AI startup Udio just one week prior, which included a licensing agreement for an upcoming 2026 service. These moves represent a strategic pivot for major labels, which had previously joined forces to sue both startups for copyright infringement.

While WMG has moved to settle, Sony Music Entertainment and Universal Music Group reportedly remain in ongoing licensing discussions with the startups. Investor confidence in the sector remains high, evidenced by Suno’s recent $250 million Series C funding round, which valued the company at $2.45 billion. That investment was led by Menlo Ventures, with additional backing from NVentures, Matrix, Lightspeed, and Hallwood Media.