Artificial intelligence music platform Udio is giving its users a brief 48-hour window to download their AI-generated songs before the company fully shifts to a new business model following a legal settlement with Universal Music Group (UMG).
The move comes after widespread backlash from users who were suddenly unable to access or download creations they had spent hours crafting.
The agreement, made public on Wednesday, concludes a copyright dispute filed by Universal Music Group, the label representing major artists including Taylor Swift, Olivia Rodrigo, Drake, and Kendrick Lamar.
As part of the deal, Udio immediately stopped allowing song downloads, sparking frustration and an exodus of paying subscribers.
"Not going to mince words: we hate the fact we cannot offer downloads right now," Udio CEO Andrew Sanchez wrote in a Reddit post addressing users' concerns. "We know the pain it causes to you, and we are sorry that we have had to do so."
According to Billboard, the 48-hour download window, beginning Monday at 11 am Eastern time, allows users to preserve their past creations under the original terms of service.
Songs downloaded during this period will remain fully owned by their creators, including the right to use them commercially. Free-tier users must provide attribution that their music was made with Udio.
Universal Music sued Udio for copyright violations.
— Shawn Chauhan (@shawnchauhan1) November 1, 2025
Now they're launching an AI music platform together in 2026.
The settlement includes financial terms and full catalog licensing. Artists who opt in get paid for training AND remixes of their songs.
The catch: Udio immediately… pic.twitter.com/t2pfofa0sW
Udio Halts Downloads to Team Up with Artists
Sanchez explained that the pause in downloads was necessary to implement a partnership with artists and songwriters as part of the new platform: "Udio is a small company operating in an incredibly complex and evolving space, and we believe that partnering directly with artists and songwriters is the way forward."
The Universal-Udio settlement marks the music industry's first legal resolution for AI-generated music.
Udio and other AI platforms, such as Suno, have pioneered tools that allow users without musical training to generate songs in various styles, from classic rock to 1980s synth-pop, AP News reported.
Record labels have argued these platforms exploit copyrighted works without compensating the original artists.
In its lawsuit, Universal pointed out that AI-generated tracks closely resembled iconic songs like Frank Sinatra's "My Way," "ABBA's Dancing Queen," and holiday classics such as "Jingle Bell Rock."
The settlement now clears the way for a new subscription-based AI service that compensates UMG and its artists while allowing creators to opt into the platform.
Artist advocacy groups have praised the deal as a step toward a "legitimate AI marketplace" but caution that protections for independent musicians and songwriters remain a concern.
"Licensing is the only version of AI's future that doesn't result in the mass destruction of art and culture," said the Artist Rights Alliance.
Originally published on vcpost.com
