The major labels sued Suno for copyright infringement in mid-2024. Now they're apparently trying to license its technology instead - and hitting a wall over a fundamental question about what AI music tools are actually for.
According to a Financial Times report, Suno is struggling to reach licensing agreements with Universal Music Group and Sony Music Entertainment. The sticking point: Universal wants AI-generated tracks to stay inside apps like Suno. Users can make music, but can't export or share it anywhere externally. Suno needs users to be able to share their creations freely if it wants any growth outside its own walls.
This reflects a genuine disagreement, not just a negotiation gap. Labels see AI music tools as a new kind of licensed karaoke - contained, monetizable, not a threat to their distribution channels. Suno raised $125 million in mid-2024 at a valuation that assumes significant user growth, and growth requires songs that can travel to TikTok, SoundCloud, or a friend's DMs.
Universal and Sony have clear reasons to push for containment. AI-generated songs on major streaming and social platforms compete directly for streams with human artists on those same platforms. The labels built their business on controlling distribution - they're not signing that away without significant restrictions.
No deal has been announced. The talks appear unresolved, and given how far apart the positions are on the core question of sharing rights, a quick resolution seems unlikely.