more insight on the situation:
https://www.reddit.com/r/SunoAI/comments/1ok9tsz/tldr_a_lawyers_perspective_on_sunoudio_lawsuits/
Suno has better chances because they are actively pursuing discovery to show anticompetitive practices to shut Suno out of fair licensing deals, and from the perspective of these big music groups, discovery into their internal discussions/operations is very bad
however, the best possible result for everyone would be Udio or Suno or both saying "well guess our business is fucked, we now have no incentive not to release our models as free and open source" and the big music groups effectively caused their own demise by failing to contain the spread of AI from the walled gardens as it is now
it may be moot because it sounds like China is poised to release their own high quality free local music models very shortly, though
https://www.reddit.com/r/SunoAI/comments/1ok9tsz/tldr_a_lawyers_perspective_on_sunoudio_lawsuits/
Quote:I am a lawyer heavily focused on AI. I am not your lawyer, but this post should definitely be relied upon for tax and medical advice.
I have now reviewed all of the dockets and pleadings for the various AI music cases. I'm not going to offer opinions on what you should do with your music or how to deal with Udio restricting downloads. But, here is what I can tell you beyond what you can read online or learn through ChatGPT.
On the same day in June 2024, UMG/Sony/Warner sued two AI-music startups—Suno (D. Mass.) and Udio (S.D.N.Y.)—claiming the companies copied label recordings to train their models.
The cases are basically twins: same plaintiffs and firms, same defense team, near-identical complaints, no early motions to dismiss, and parallel, heavy discovery on ownership and market impact.
Suno and Udio have asserted that their use of copyrighted material as "intermediate" copies in a "back-end technological process" to create a new tool constitutes a quintessential fair use. Suno has also filed the affirmative defense of "copyright misuse," alleging the plaintiffs are using their market dominance in an anticompetitive effort to choke off AI competitors.
Interestingly, Suno claims it was in "nascent licensing discussions" with the labels before the lawsuit, but these talks "were suddenly thwarted, evidently by agreement between Plaintiffs... to collectively refuse to enter any go-forward licensing deal with Suno". Suno also alleges the labels are "leveraging" their market power to pressure their other licensees (like streaming services) to adopt a "'no AI' policy" and refuse to partner with AI companies or host AI-generated music.
Suno and Udio have done a great job showing that their training process is protected by the fair use doctrine. They argue that any copying was "intermediate" and "transformative," done as part of a "back-end technological process" to create a new, non-infringing tool that generates its own original music.
In response, the labels are asserting a new claim under the Digital Millennium Copyright Act (DMCA), which would circumvent that defense. The DMCA claim alleges the AI companies illegally "stream-ripped" training data from YouTube by circumventing its "rolling cipher". Both Suno and Udio argued this new claim is "futile" as a matter of law, contending the DMCA only prohibits circumventing "access controls" (which they argue YouTube videos do not have) and not "copy controls" (which they argue the rolling cipher is). In Udio, the court allowed the DMCA amendment and Udio moved to dismiss that count; in Suno, the court heard argument on leave to amend and took it under advisement.
Here is where the Udio/Suno cases diverge. The primary difference lies in Suno's aggressive development of its copyright misuse defense. The Suno docket shows active and contentious discovery disputes where Suno is seeking sensitive documents from the labels to prove they engaged in anticompetitive behavior, such as a "concerted refusal to license" their music to Suno and other AI companies in an effort to "stifle potential competition".
The second difference is that the Udio case has a special master instead of a magistrate judge. Special master is a fancy word for "black hole money pit." Aside from bringing expertise to the table, the special master is also charged with facilitating a settlement. If it is humanly possible to settle a case, the special master will force it. And the parties are incentivized also because they have to pay out of their own pockets for the special master.
So..... you can form your own opinion on what is likely to happen next. I see three likely outcomes, ranked by likelihood.
1. Suno settles with similar terms to Udio. Without a special master, it makes sense they are a little behind on negotiations. But, with the exact same counsel involved in both cases, it may be just a matter of time.
2. The courts will allow the DMCA amendment but later narrow or reject the “stream-ripping” theory (access- vs. copy-control). Discovery on ownership and fair-use “market harm” will continue to set the tone for negotiations, but summary judgment motions will be coming in the next 6-8 months, resulting in a "better" settlement for Suno.
3. A trial (least likely): If talks stall, the fight could narrow to whether AI training is fair use and whether Suno’s “misuse” theory has teeth. But given cost and risk, both sides have every incentive to settle long before that happens.
1:24cv4777, Umg Recordings, Inc. Et Al V. Uncharted Labs, Inc. Et Al
1:24cv11611, Umg Recordings, Inc. Et Al V. Suno, Inc. Et Al
If you have any questions, ask ChatGPT, not me.
Suno has better chances because they are actively pursuing discovery to show anticompetitive practices to shut Suno out of fair licensing deals, and from the perspective of these big music groups, discovery into their internal discussions/operations is very bad
however, the best possible result for everyone would be Udio or Suno or both saying "well guess our business is fucked, we now have no incentive not to release our models as free and open source" and the big music groups effectively caused their own demise by failing to contain the spread of AI from the walled gardens as it is now
it may be moot because it sounds like China is poised to release their own high quality free local music models very shortly, though
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