Udio has reached a licensing agreement with Merlin, the global organization that represents thousands of independent record labels, creating one of the first structured deals between an AI music company and indie rights holders.
The agreement, announced by the two organizations, allows Udio to license music from Merlin’s members for use within its generative AI system. The arrangement includes compensation for rights holders and sets rules around how the recordings can be used, according to the companies involved. The move comes as AI music tools face growing scrutiny over how training data is sourced and whether artists and labels are properly paid.
Merlin represents independent labels across dozens of countries and has increasingly taken an active role in negotiating technology-related deals on behalf of its members. This partnership signals an effort to establish clearer boundaries between AI developers and the music industry, particularly as lawsuits from major record companies against other AI music platforms continue to unfold.
For Udio, the deal provides licensed access to a broad catalog of independent music. For Merlin’s members, it offers a way to participate in AI-driven music development under defined terms rather than being excluded from it.
