Australia’s biggest music exports could soon be protected from unauthorised AI-generated remixes as Universal Music Group, Warner Music Group and Sony Music Entertainment are deep in negotiations with AI music startups Suno and Udio.

The talks, confirmed by multiple sources and first reported by Bloomberg and The Wall Street Journal, centre on licensing agreements that would allow the startups to use major label catalogues to train generative AI models, in exchange for compensation and equity stakes.

This follows high-profile lawsuits filed last year by the labels, accusing the startups of copyright infringement for training their models on copyrighted material without permission.

While Suno and Udio maintain their tools do not directly copy music, legal pressure and investor scrutiny appear to be pushing all parties towards a commercial settlement.

Key to the negotiations is the development of advanced tracking tech, similar to YouTube’s Content ID, that would detect when and how a song is used in AI-generated output.

Labels are also demanding creative oversight and “opt-out” options for artists like Taylor Swift, Ed Sheeran and Drake.

If finalised, the agreements could establish a global precedent for how music is licensed and monetised in the age of AI.

The outcome may also influence regulatory debates, especially after the recent dismissal of US Copyright Office director Shira Perlmutter sparked concerns the US government may lean toward tech firms in AI disputes.

The deals would likely include a financial settlement and help end the ongoing lawsuits, paving the way for a new AI-music economy where creators are finally cut in.