Music Creators North America Demands UMG-Udio Licensing Transparency, Says It Can’t Accept Opt-In Assurances Before Seeing ‘The Entirety of the Deal in Writing’

As UMG and Udio continue to hold their cards close to the vest, Music Creators North America (MCNA) has added its voice to the chorus of demands for deal-terms transparency.

MCNA laid out its misgivings and reiterated its broader stance on AI regulations today, in a release that was emailed to DMN. By now, most are aware of the lawsuit-ending agreement finalized by Universal Music Group (UMG) and Udio.

But key questions remain about the exact terms at hand – and, in turn, the tie-up’s precise implications for other stakeholders and professionals. While the groundbreaking deal involves the major and the music generator in particular, the framework will set the tone for gen AI licensing throughout the industry.

And despite the partnership’s resulting importance for different companies and musicians themselves, specifics are few and far between. Late October saw Irving Azoff and the Music Artists Coalition call for “creative control, fair compensation, and clarity,” the latter of which hasn’t really materialized in the interim.

Enter MCNA’s concerns, pertaining most immediately to the reported presence (or, in its view, the possible lack thereof) of an opt-in option for creators.

“The litigants and their supporters apparently believe that since the settlement will purportedly require the opt-in consent of creators to make them subject to the agreed upon future licensing terms, full transparency at present remains unnecessary,” MCNA wrote.

“We wholeheartedly disagree, and remain apprehensive that such blind endorsements are evidence of an aggressive, market-pressure strategy by the litigants to cut off public discussion of the deal’s less advantageous aspects for songwriters, composers and artists while the opportunity for such creators to have meaningful input still exists,” the coalition proceeded.

What would convince MCNA of “the efficacy of the alleged opt-in consent provisions,” then?

Well, the organization, which counts as members the Songwriters Guild of America, the Society of Composers & Lyricists, and more, would need to see “the entirety of the deal in writing” before reaching any conclusions.

“Past experiences with oral assurances by multi-national music conglomerates that turned out not to be wholly accurate have made the music creator and artist communities highly sensitive to promises without proof,” MCNA emphasized.

Rounding out the release, Music Creators North America doubled down on calls for “generative AI protections” designed to preserve “the viability of music creation.”

Said protections include but aren’t limited to “national regulations” requiring generative models to maintain music-usage records, industry standards compelling the public disclosure of gen AI licensing/settlement terms, the development of tech to identify the works behind individual outputs, a much-needed “fair use” clarification, and bolstered likeness rights.