The burgeoning tension between intellectual property law and the evolution of generative AI is exemplified in a major lawsuit. The Recording Industry Association of America (RIAA), representing major labels such as UMG, Sony, and Capitol Records, has initiated legal proceedings against two AI startups, Udio and Suno. The crux of the litigation lies in the alleged unauthorized use of copyrighted songs for training AI models, which the RIAA claims infringes upon their exclusive rights.

There has been a notable increase of copyright claims against AI entities, with plaintiffs ranging from artists to media organizations. These lawsuits often have to navigate the murky waters of what constitutes fair use of copyrighted content in the training and output of AI systems.

Significantly, the dispute involving the New York Times and OpenAI hinged on the resemblance of AI-generated text to NYT's copyrighted articles. In contrast, the RIAA's approach zeroes in on the 'input' aspect of AI training, challenging the notion that using copyrighted songs as data for AI learning falls under fair use.

The RIAA seeks injunctive relief to prevent Udio and Suno from utilizing their copyrighted music for AI training, alongside statutory damages that could be substantial, given the $150,000 price tag per infringement cited in the suits.

Legal experts are divided on the outcome of these disputes, particularly concerning the fair use defense. However, there is consensus that the outcomes of these cases, including that of the RIAA, will set important precedents for the numerous AI copyright suits currently navigating the judicial system.

Quick Overview: Who are Udio and Suno?

• Udio: A product of Uncharted Labs, Udio is a generative AI platform launched on April 10, 2024, that crafts music from textual prompts.

• Suno: Created by Suno Inc., this service also generates music based on user inputs, offering both free and premium subscription models.

The allegations by the RIAA revolve around the contention that both startups have engaged in the unauthorized scraping of copyrighted music to train their AI models. This music is then allegedly regurgitated in new compositions that bear striking similarities to the originals, challenging the startups' claims of fair use.

Both Udio and Suno have defended their practices, emphasizing their focus on generating new musical expressions and the implementation of filters to prevent direct reproduction of copyrighted content. Suno's CEO Mikey Shulman has publicly stated their commitment to fostering musical creativity and originality, contrasting this with the RIAA's litigious mindset.

From a legal standpoint, the RIAA's argument does not rest on the direct infringement of the output but rather uses it as evidence of the alleged underlying infringement—the scraping of copyrighted material for AI training. Brandon Butler, a Copyright Attorney and Executive Director of the Re:Create Coalition, notes the uniqueness of this suit in its focus on the input side of AI training.

Butler points out that the case law, including the landmark Sega Enterprises v. Accolade Inc. decision, supports the creation of new works that may compete in the marketplace, thus potentially weakening the RIAA's position. However, the nuances of the fair use doctrine, particularly its fourth principle concerning market harm, could play a critical role in the adjudication of these cases.

Cecilia Ziniti, an Attorney and CEO of GC AI, observes that the RIAA's action was anticipated, given the organization's history and the strategic choice of defendants. Ziniti highlights the potential competitive threat posed by the AI startups to the established music market, a factor that could influence the court's interpretation of market impact under fair use.

As the legal battle unfolds, the implications for the AI industry and copyright holders are profound. The RIAA's tenacity in pursuing these claims suggests a long and possibly contentious legal journey ahead for companies like Udio and Suno, as well as for the broader landscape of generative AI and intellectual property rights.