The International Federation of the Phonographic Industry (IFPI) has taken Suno and Udio, major players in the global music streaming industry, to court for copyright infringement. According to BBC, this legal action could result in significant fines for the companies. Sony Music, Universal Music Group, and Warner Records have accused Suno and Udio of blatantly infringing on the rights of copyright holders. They claim that the platforms facilitated the creation of unauthorized reproductions and are demanding compensation of $150,000 for each infringed work.

BBC reports that the American Association of Independent Music has also filed requests for legal action against companies that exploit the rights of copyright owners, collective management organizations, and other groups. Suno, a subsidiary of Microsoft, released its first product last year and boasts over 10 million users who create music using the platform. The company operates in collaboration with Microsoft and charges a monthly fee for its services. Recently, Suno announced a $125 million investment from investors.

Udio, also known as Uncharted Labs, is based in New York and collaborates with prominent venture capitalists such as Andreessen Horowitz. The platform was released to the public in April and garnered attention with the release of “BBL Drizzy,” a collaboration between artist Kendrick Lamar and Drake.