Sony Expands AI Music Copyright Battle, Files New $4.5B Lawsuit Against Udio

Sony Music has escalated its legal fight against AI music generator Udio, filing a new copyright lawsuit that seeks $4.5 billion in damages, according to a report from Billboard.

The lawsuit was filed on Monday, July 20, and expands Sony's original claims against the platform. The music giant now alleges Udio infringed upon over 30,000 Sony-owned sound recordings, a massive increase from the 333 songs cited in the initial 2024 lawsuit.

Why is Sony suing Udio again?

Sony says it wasn't until the legal discovery process that it learned the true scale of the alleged infringement. In court filings, the company calls the original 333 songs a "minuscule, illustrative fraction of the recordings Udio had actually copied." Sony alleges these recordings were taken from YouTube and used to train Udio's AI model without permission.

Procedurally, Sony had to file a new lawsuit to add the new recordings. A federal judge last month refused to let Sony amend its original case, noting it would "substantially prejudice defendants and unduly delay the resolution." Judge Alvin K. Hellerstein wrote, "I recognize that plaintiffs have the right to seek to stop infringement of, and recover damages for, all copyrighted works. But there is no requirement that it be done in this lawsuit."

How does Sony counter Udio's fair use argument?

Udio has maintained its training process constitutes fair use. Sony directly challenges this in the new complaint, pointing to the licensing deals Udio has struck with other major players. The company notes Udio has inked agreements with Universal Music Group, Warner Music Group, Kobalt, Merlin, Believe, and the National Music Publishers' Association.

Sony argues these deals undermine Udio's fair use defense. "A company that pays to license the very inputs at issue cannot credibly maintain that no market exists for those inputs," Sony writes in the complaint. The company states it is not opposed to AI technology but insists any relationship must be built on "free-market licensing that ensures proper respect for copyright owners."

Sony is now the sole major label continuing to litigate against Udio. Universal and Warner Music Group settled their lawsuits with the AI company last fall, agreeing to licensing deals that will see Udio build a new model with pre-cleared data. A Sony representative declined to comment beyond the court filings, and Udio did not immediately return a request for comment.