This week, a federal judge dismissed Salt-N-Pepa’s case against UMG, reiterating artists don’t own their master recordings. Meanwhile, UMG’s top exec is sounding alarms about the dangers of AI in music.
A US federal judge has dismissed the lawsuit filed by the legendary rap duo Salt-N-Pepa against Universal Music Group (UMG). The court ruled that Cheryl James and Sandra Denton, who make up Salt-N-Pepa, never owned the copyrights to their master recordings, which means they cannot reclaim them. The decision came from Judge Denise Cote of the US District Court for the Southern District of New York, who granted UMG’s motion to dismiss both claims on Thursday, January 8.
Salt-N-Pepa filed their lawsuit in May 2025, seeking to regain copyright ownership and physical master recordings through the termination rights outlined in Section 203 of the Copyright Act. This provision allows artists to reclaim rights 35 years after an initial transfer of copyright. However, the court found that the duo did not retain ownership, thus leading to the dismissal of the case.
In related news, Sir Lucian Grainge, Chairman and CEO of UMG, has issued a stark warning regarding the potential pitfalls of artificial intelligence in music. In his annual New Year memo, Grainge emphasized that UMG would not support “irresponsible business models” that devalue artists. He described the proliferation of low-quality AI-generated music on streaming platforms as a “grave disservice” to artists, songwriters, and everyone in the music industry.
Grainge’s memo, which was circulated among UMG staff on January 8, highlighted the necessity of respecting artists’ work and creativity. He made it clear that UMG intends to take a firm stance against any business practices that undermine the value of music and artists’ compensation.
On a different note, HYBE America has appointed Ethiopia Habtemariam as its new President of Music. Habtemariam, who recently led Motown Records under UMG, will be pivotal in guiding HYBE America’s growth, focusing on A&R, artist development, and identifying new opportunities. She will be based in Los Angeles and Atlanta, leveraging her connections in the music industry.
Additionally, music subscription revenues in the UK have seen a modest increase of 3.2% year-over-year, matching the country’s inflation rate. Preliminary statistics from the Entertainment Retailers’ Association (ERA) indicate that UK consumers spent approximately £2.045 billion (around $2.69 billion) on music streaming subscriptions in 2025, a rise from £1.982 billion in 2024.
In a further development, UMG has announced a significant partnership with AI tech leader NVIDIA. This collaboration aims to merge AI technology with UMG’s extensive catalog to enhance music creation and ensure fair compensation for artists. The partnership seeks to pioneer what both companies call “responsible AI for music discovery, creation, and engagement.”