Udio Argues AI Music Training Is 'Quintessential Fair Use,' Pushes for Minimal Damages in Sony Lawsuit

Udio is defending its AI music generation training as fair use in a lawsuit brought by Sony Music Entertainment and nine affiliated labels over more than 30,000 recordings. The suit, filed after a court declined to let Sony add the recordings to an existing case against the company, represents a significant escalation in the legal battle over whether using copyrighted music to train generative AI models constitutes infringement.

In its defense, Udio is arguing that even if infringement is found, statutory damages should be reduced to as low as $200 per work — far below standard rates. The case is shaping up as a key test of how courts will interpret fair use in the context of AI training data, with major implications for the music industry and generative AI developers alike.