Warner Music Group is aggressively seeking to dismiss the breach of contract lawsuit filed by the American Federation of Musicians, arguing the union is attempting to enforce a contractual right and royalty rate that do not exist under current labor agreements. This legal maneuver directly impacts how major labels navigate generative AI licensing deals and whether session musicians will receive compensation for their work used in AI model training.
Warner Claims It Is Not a Signatory to the Labor Agreement
In a pre-motion letter filed with the court, Warner Music Group Corp. asserted it is not a signatory to the Sound Recording Labor Agreement (SRLA) that governs the dispute. The label further stated it does not own the copyrights in question, was not a plaintiff in the separate copyright infringement lawsuits against AI companies Suno and Udio, and consequently holds no licenses with those entities. Warner contends that because the company is not the party bound by the SRLA, the AFM cannot assert a breach of contract claim against Warner Music Group Corp. specifically. The label argues this fundamental party distinction alone warrants dismissing the complaint entirely.
The SRLA Does Not Cover AI Licensing Revenue
Beyond the party-distinction argument, Warner maintains that the SRLA, inked in early 2023, never contemplated compensation for licensing content to train AI models. The label asserts the AFM is filing the lawsuit to improperly influence ongoing negotiations and create new contractual obligations out of thin air. Warner emphasizes that without an explicit AI clause in the agreement, there can be no performance, breach, or resulting damage. The company argues that the “new use” section of the SRLA is inapplicable because no agreement exists covering this new medium, leaving the union with no entitlement to payment under Article 21.
Discovery Stay Requested Amid Ongoing Negotiations
Warner is requesting a pre-dismissal-motion conference and a stay on discovery pending the resolution of its motion. The label warns that discovery would force the disclosure of sensitive AI licensing negotiations and terms while the company is simultaneously engaged in talks with the AFM regarding a fresh SRLA. While the UK Musicians’ Union recently backed the AFM action as part of a global fight for AI compensation, Warner’s dismissal push aims to halt the legal process before it complicates these delicate business discussions. The outcome will determine if labels must retroactively pay musicians for AI training rights or if existing contracts exclude such generative uses.
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