Big 3 record labels sue AI music generators for alleged copyright infringement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
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Source: SeekingAlpha
- Top Record Labels Sue AI Music-Making Companies: Major record labels are suing Suno and Udio for allegedly training their AI models through mass copyright infringement of sound recordings.
- Lawsuits Filed by Big Three Record Labels: The Recording Industry Association of America filed two copyright infringement cases on behalf of Universal Music Group, Sony Music Entertainment, and Warner Records against the AI music generators.
- Legal Actions Seek Declarations and Damages: The cases aim to declare that Suno and Udio infringed copyrighted sound recordings, seek injunctions against further infringement, and claim damages of up to $150,000 per work infringed.
- Concerns Over AI in Content Creation: There are growing concerns about the use of AI in content creation, including music, movies, and literature.
- Recent Actions in the Music Industry: Last month, Sony Music warned over 700 companies against unauthorized use of its content for AI training, while Universal Music previously sued an AI startup for alleged infringement of song lyrics.
Analyst Views on WMG
Wall Street analysts forecast WMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMG is 36.67 USD with a low forecast of 30.00 USD and a high forecast of 46.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 29.850
Low
30.00
Averages
36.67
High
46.00
Current: 29.850
Low
30.00
Averages
36.67
High
46.00
About WMG
Warner Music Group Corp. is a global music entertainment company. The Company brings together artists, songwriters, entrepreneurs, and technology that are moving entertainment culture across the globe. Its record labels include Atlantic Records, Warner Records, Elektra Records, Parlophone Records, and Cloud 9 Recordings. Its recorded music segment includes labels, such as 10K Projects, 300 Entertainment, Asylum, Atlantic, Big Beat, Elektra, Erato, First Night, Fueled By Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin', Warner Records, Warner Classics, and Warner Music Nashville. Its music publishing arm, Warner Chappell Music, has a catalog of over one million copyrights spanning every musical genre. It is also home to the Alternative Distribution Alliance (ADA), which supports the independent community, as well as artist services division WMX. In addition, it counts film and television storytelling powerhouse, Warner Music Entertainment, among its many brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
