Merlin signs AI licensing partnership with Udio

Under the agreement, Udio will train new AI models using music licensed from participating Merlin members. The partnership sets out safeguards intended to protect artists’ rights, ensure consent, and provide remuneration for the use of their work in AI development. Merlin said the arrangement is designed to recognise the value of human creativity while enabling collaboration with emerging technologies.

The deal positions Merlin as one of the first major independent-sector bodies to formalise licensed AI training agreements, amid ongoing debate across the music industry about the unlicensed use of recordings in AI systems.

Merlin chief executive Charlie Lexton said the partnership was built on principles of licensing and consent. “As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music,” he said. “For some time, Merlin and Udio have been engaged in conversations focused on a foundation of consent and fair remuneration.”

Lexton added that the agreement reflects Merlin’s broader strategy in the AI space. “Our partnership illustrates that Merlin is committed to participating in shaping the opportunities AI promises, rather than simply reacting to its development,” he said.

Udio co-founder and chief executive Andrew Sanchez said independent artists were central to the collaboration. “By teaming up with Merlin, we’re ensuring they maintain control over their work and are compensated for their creativity,” he said, adding that the partnership aims to provide new creative tools for artists and fans.

Beyond model training, Merlin and Udio said they plan to explore new forms of creative expression enabled by AI, though no specific products or timelines were disclosed.

Merlin represents independent labels and distributors from more than 70 countries and accounts for an estimated 15 per cent of the global recorded music market. Its members include companies such as Ninja Tune, Sub Pop, Nettwerk, Armada Music and Secretly Group. Udio is an AI music platform backed by technology and music industry investors, including a16z and will.i.am.

The agreement comes as record labels, artists and rights organisations increasingly seek licensed approaches to AI development, following concerns that unregulated training practices could undermine copyright and artist income.