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X Corp, owned by billionaire Elon Musk, has sued 18 major music publishers and a leading U.S. music industry trade group, alleging they conspired to block competition and force the platform to buy music licenses at inflated prices. The lawsuit, filed on Friday in a federal district court in Texas, accuses the National Music Publishers’ Association along with major publishers including Sony Music, Universal Music Group and Warner Chappell of violating U.S. antitrust law. X alleges the publishers collectively refused to negotiate individual licensing agreements, instead pushing industrywide terms that the company says are anti-competitive. “X has been denied the ability to acquire a U.S. musical-composition license from any individual music publisher on competitive terms,” the complaint said. David Israelite, president and CEO of the National Music Publishers’ Association, rejected the claims, saying X is the only major social media platform that does not properly license music. “We allege that X has engaged in copyright infringement for years, and its meritless lawsuit is a bad faith effort to distract from publishers’ and songwriters’ legitimate right to enforce against X’s illegal use of their songs,” he said in a statement. Sony Music referred Reuters to the association’s response and declined further comment. Universal Music and Warner Chappell did not immediately respond to requests for comment. X also did not respond to a request for comment. According to the lawsuit, publishers representing more than 90% of U.S. copyrighted music coordinated their actions through the trade group. X said the publishers have issued thousands of takedown notices each week, targeting posts that contain copyrighted music — including those from high-profile accounts — in an effort to pressure the platform into accepting collective licensing terms. X said it has removed thousands of posts and suspended more than 50,000 users as a result, hurting its user engagement and advertising revenue. The company is asking the court to restore what it calls competitive conditions in music licensing and to award damages for lost ad revenue. The case follows earlier legal battles between X and music publishers. In 2024, X won dismissal of most claims in a lawsuit filed in 2023 by 17 publishers, including Sony and Universal, who accused the platform of infringing copyrights on nearly 1,700 songs and sought more than $250 million in damages. X said in Friday’s filing that some of the publishers involved in past litigation have been willing to negotiate individual settlements.

X Corp, owned by billionaire Elon Musk, has sued 18 major music publishers and a leading U.S. music industry trade group, alleging they conspired to block competition and force the platform to buy music licenses at inflated prices.

The lawsuit, filed on Friday in a federal district court in Texas, accuses the National Music Publishers’ Association along with major publishers including Sony Music, Universal Music Group and Warner Chappell of violating U.S. antitrust law. X alleges the publishers collectively refused to negotiate individual licensing agreements, instead pushing industrywide terms that the company says are anti-competitive.

“X has been denied the ability to acquire a U.S. musical-composition license from any individual music publisher on competitive terms,” the complaint said.

David Israelite, president and CEO of the National Music Publishers’ Association, rejected the claims, saying X is the only major social media platform that does not properly license music. “We allege that X has engaged in copyright infringement for years, and its meritless lawsuit is a bad faith effort to distract from publishers’ and songwriters’ legitimate right to enforce against X’s illegal use of their songs,” he said in a statement.

Sony Music referred Reuters to the association’s response and declined further comment. Universal Music and Warner Chappell did not immediately respond to requests for comment. X also did not respond to a request for comment.

According to the lawsuit, publishers representing more than 90% of U.S. copyrighted music coordinated their actions through the trade group. X said the publishers have issued thousands of takedown notices each week, targeting posts that contain copyrighted music — including those from high-profile accounts — in an effort to pressure the platform into accepting collective licensing terms.

X said it has removed thousands of posts and suspended more than 50,000 users as a result, hurting its user engagement and advertising revenue. The company is asking the court to restore what it calls competitive conditions in music licensing and to award damages for lost ad revenue.

The case follows earlier legal battles between X and music publishers. In 2024, X won dismissal of most claims in a lawsuit filed in 2023 by 17 publishers, including Sony and Universal, who accused the platform of infringing copyrights on nearly 1,700 songs and sought more than $250 million in damages. X said in Friday’s filing that some of the publishers involved in past litigation have been willing to negotiate individual settlements.

Universal and Warner Music Close to Striking Landmark AI Licensing Deals

Universal Music Group (UMG) and Warner Music Group (WMG) are reportedly on the verge of signing major artificial intelligence licensing agreements that could reshape how music is used and monetized in the AI era, according to a Financial Times report published Thursday.

Sources familiar with the discussions said that both music giants could finalize their deals within weeks, as they negotiate with a mix of AI start-ups and major tech companies.

Among the start-ups in talks are ElevenLabs, Stability AI, Suno, Udio, and Klay Vision. The labels are also in advanced discussions with industry heavyweights such as Alphabet’s Google and Spotify, according to the report.

Neither Universal, Warner, Google, nor Spotify immediately responded to Reuters’ requests for comment.

TOWARD A NEW MUSIC-AI BUSINESS MODEL

The potential deals represent a pivotal moment for the music industry, which has long battled unauthorized AI-generated content and the use of copyrighted works to train generative models. If completed, the agreements would establish a formal licensing framework allowing AI firms to access and use songs legally — for both music generation and AI model training.

Negotiations have reportedly focused on creating a payment system modeled after music streaming royalties, where every use or AI-generated playback of a song would trigger a micropayment to rights holders.

LEGAL AND ETHICAL PRESSURES ON AI FIRMS

The rise of generative AI has fueled a surge in lawsuits from artists and rights holders, accusing companies of using copyrighted material without consent or compensation. These potential licensing deals could help defuse legal tensions while providing a new revenue stream for record labels.

AI companies like ElevenLabs and Suno have been pushing the boundaries of voice synthesis and music generation, raising ethical questions about authorship and originality. By formalizing partnerships with major labels, these firms could legitimize AI-created music and ensure artists receive compensation.

A LANDMARK SHIFT FOR THE INDUSTRY

If finalized, these agreements would mark the first large-scale AI licensing model in the global music industry — a step that could influence how other creative sectors handle the intersection between AI and copyright.

Music industry observers say such deals could become a template for balancing innovation with intellectual property protection, ensuring that the creative ecosystem adapts rather than resists AI’s growing influence.