Legal Challenges, AI Policies, and Global Oversight: The Music Industry Faces a New Era of Accountability
How The Music Business Works - Issue #35
October 30, 2025
Welcome back to How The Music Business Works!
This week’s leading stories highlight a growing convergence between technology, copyright law, and global regulation. Record labels continue their legal campaign against AI music startups accused of unauthorized scraping, while a new lawsuit involving Lizzo raises questions about rights in social media teasers.
Performing rights organizations across North America have aligned on new standards for AI-assisted authorship, signaling a unified approach to human creativity in the digital era. Meanwhile, the European Commission has reopened its antitrust probe into Universal Music Group’s proposed acquisition of Downtown Music Holdings, and the upcoming Music Industry Education Conference has announced a speaker lineup focused on innovation and career development.
Together, these updates reflect how legal clarity and professional education are becoming central to the future of music.
Here's the news.
AI Firm Udio Hits Legal Roadblock Over YouTube Scraping Claims
Major record labels have filed new arguments against Udio’s attempt to dismiss a lawsuit accusing the AI company of illegally scraping copyrighted material from YouTube. The labels contend that Udio’s defense contains critical flaws and that making videos publicly available does not eliminate copyright protections. They argue that Udio violated the Digital Millennium Copyright Act by circumventing access controls while training its generative models. Udio argues that downloading public YouTube content isn’t illegal, but the labels insist this misinterprets DMCA protections and doesn’t excuse unauthorized use of copyrighted works. The case parallels ongoing disputes involving other AI firms and highlights how unlicensed music training continues to test the boundaries between innovation and infringement.
Lizzo Lawsuit Raises Stakes Over Unreleased Track Snippet
Lizzo and her label Atlantic Records are being sued by GRC Trust for allegedly sampling a 1970s soul ballad titled “Win or Lose (We Tried)” in an unreleased track previewed on social media. The lawsuit claims that even a short, promotional snippet used without authorization constitutes infringement. Lizzo’s team maintains that the song has never been commercially released and expressed surprise at the complaint. The filing also alleges that the social media clip generated measurable engagement and publicity, which the plaintiff argues amounts to commercial use. Legal experts note that the case could test how courts interpret copyright protection in promotional or non-commercial online content. As short-form videos and teaser campaigns become central to music marketing, this lawsuit may set an important precedent for how artists handle sample clearance before a song’s official release.
PROs Align on AI and Human Authorship Policy
ASCAP, BMI, and SOCAN have jointly announced a coordinated policy on how musical compositions created with AI tools should be treated when combined with human authorship. The organizations clarified that works must contain significant human creative input to qualify for copyright protection or registration. Fully AI-generated works remain ineligible under current U.S. and Canadian law. The groups emphasized transparency in the registration process, urging songwriters and publishers to disclose the use of AI tools when submitting works. Industry observers say the move could influence future legislative frameworks as governments refine definitions of authorship in the age of generative technology. By establishing shared standards early, these organizations aim to protect human creativity while allowing responsible innovation to continue within clear legal boundaries.
EU Rekindles Antitrust Probe into Universal’s 775 Million Dollar Downtown Deal
The European Commission has restarted its investigation into Universal Music Group’s proposed 775 million dollar acquisition of Downtown Music Holdings. Europe’s competition authority temporarily paused the inquiry into the deal in September while waiting for information requested as part of the investigation. Regulators have set a new decision deadline for early 2026. The deal would merge Universal’s Virgin Music services with Downtown’s distribution and publishing divisions, prompting concern among independent labels and artist advocates that it could reduce competition across Europe’s music services sector. The renewed probe reflects increasing scrutiny of consolidation and market power within the global music industry.
Music Education Conference Charts Industry’s Future
Organizers of the Music Industry + Music Education Conference, brings together key people from the music industry and music education to discuss the best ways to support future music talent, both on and off stage, have released the event’s full program and list of speakers. The conference will explore topics such as rights management, music data, AI in creative practice, and entrepreneurial skills for artists and executives. Industry educators and leaders emphasize that these areas are becoming essential for the next generation of professionals entering an increasingly digital and data-driven marketplace. The event aims to bridge gaps between education, business, and creative development in today’s evolving industry.