The American Federation of Musicians of the US and Canada (AFM) has filed a federal lawsuit June 5, 2026, in the U.S. District Court for the Southern District of New York against major record labels.

The lawsuit names such record labels as Universal Music Group, Atlantic Recording Corp., and Warner Records and states that these labels failed to compensate musicians and notify the union after licensing their vast recording catalogs to artificial intelligence platforms Suno and Udio.

The suit also alleges that the record companies breached the Sound Recording Labor Agreement (SRLA), the collective bargaining agreement with the AFM that protects performing musicians. Under the long-standing “new use” provision of the SRLA, whenever music recorded under the agreement is repurposed or licensed for a new format, the label is legally required to notify the AFM and pay “new use” compensation to the musicians who performed on those original tracks. The AFM also contends that licensing recorded music for AI model training and music generation falls squarely under this rule.

In a statement, AFM International President Tino Gagliardi said, “Record labels built multi-million-dollar AI deals on the backs of our members, yet the artists whose life’s work powered these technologies haven’t received a single dime. The labels cannot pocket massive payouts while cutting working musicians out of the equation. This lawsuit is about transparency, accountability, and ensuring our artists receive every cent of the ‘new use’ royalties guaranteed to them under our collective bargaining agreement.”

The AFM represents professional instrumental musicians playing in orchestras, bands, clubs, and theater—both on Broadway and on tour. AFM members make music for film, television, commercials, and sound recordings. The AFM negotiates fair agreements, protects ownership of recorded music, secures benefits such as health care and pension, and lobbies for musicians and the rights of workers.