LOS ANGELES/LONDON – Universal Music Group (UMG), the world’s largest music label, has announced a groundbreaking licensing agreement with artificial intelligence startup Endel that will allow the creation of legally sanctioned AI-generated music for the first time. This landmark deal, confirmed on Tuesday, establishes the first official framework for AI companies to use UMG’s vast catalog and artist roster to train AI models and generate new musical works, while ensuring proper compensation and credit for human artists and rights holders.
The partnership represents a significant turning point in the contentious relationship between the music industry and AI developers, moving from widespread litigation over copyright infringement toward a structured, revenue-generating model. Under the agreement, Endel will gain access to UMG’s catalog to create AI-powered soundscapes and functional music, with all output being commercially distributed through Universal’s platforms while ensuring royalty payments to artists and songwriters.
The Deal’s Architecture: How It Balances Innovation and Rights
The framework established by this pioneering agreement offers a potential blueprint for how the $28 billion global music industry can harness AI technology without undermining the creative and financial rights of artists.
- Ethical Training Data: Endel will use UMG’s copyrighted recordings and compositions to train its AI algorithms under strict licensing terms, setting a precedent for how AI companies can legally access protected musical works rather than scraping them from the internet without permission.
- Artist-Centric Model: The agreement includes robust provisions ensuring that artists maintain control over how their voices and musical styles are used. The system is designed to be “opt-in,” allowing UMG artists to choose whether to participate in AI music generation projects.
- Royalty Framework: A clear royalty structure has been established that will compensate artists, songwriters, and rights holders whenever AI-generated music using their works or styles is created and distributed, addressing one of the industry’s primary concerns about uncompensated use.
Broader Industry Implications: From Lawsuits to Licensing
This deal arrives amid escalating legal battles between music rights holders and AI companies. Just months ago, UMG was among several major labels suing AI startups for alleged “systematic theft” of copyrighted music, making this transition to partnership particularly significant.
- Setting a Market Rate: The financial terms, though undisclosed, establish the first benchmark for what constitutes fair compensation for using copyrighted music to train and fuel AI systems, giving other labels and publishers leverage in their own negotiations.
- Regulatory Influence: The agreement strengthens the music industry’s position in ongoing global regulatory discussions about AI, demonstrating that workable commercial models can exist without requiring new copyright exceptions for AI training.
- Artist Division: While some artists have embraced AI experimentation, many prominent musicians have publicly condemned unauthorized AI music generation. This deal creates a legitimate pathway for those interested in exploring the technology while respecting the objections of others.
The Future of AI in Music Creation
The UMG-Endel partnership signals a new chapter where AI transitions from being an existential threat to a potential tool for legal music creation and discovery. Endel, known for creating AI-generated soundscapes to improve focus and sleep, will initially produce functional music, but the technology could eventually expand to more mainstream genres.
As Lucian Grainge, Chairman and CEO of Universal Music Group, stated in the announcement, “This partnership provides a blueprint for how AI and human creativity can coexist in ways that recognize and respect the irreplaceable role of human artistry while harnessing the potential of new technologies.”
The success of this model could determine whether the music industry’s relationship with AI remains adversarial or evolves into a collaborative future where technology amplifies rather than replaces human creativity.
