AI music licensing is moving into a new era. On June 10, 2026, the NMPA announced two unprecedented deals with Udio and KLAY at its annual meeting in New York. A 50/50 split between songs and sound recordings is finally on the table, and US publishing revenues hit $7.3 billion in 2025.

AI music licensing: an annual meeting that shifts the ground

The National Music Publishers’ Association is the trade body representing US music publishers. It used its New York gathering to announce two deals that publishers have been waiting on for two years. President and CEO David Israelite confirmed a framework license with the generative AI music platform Udio. He also unveiled an agreement in principle with the AI startup KLAY. Outlets covering the event describe a clear turning point for songwriters facing the AI music licensing wave.

The NMPA also revealed a strong number for its members. US music publishing revenues hit $7.3 billion in 2025. That figure tilts the balance of power with AI platforms. It is also a reminder that publishing is now a pillar of the music economy, on par with the labels.

The contrast with 2024 is striking. Two years ago, Udio was being sued by the majors through the RIAA. Today, the same company joins publishers at the table as a commercial partner. AI music licensing is leaving the courtroom and entering contracts.

Udio: from defendant to framework licensee

The NMPA calls the Udio deal “the first-ever industry-wide licensing deal with a major AI music company”. Members in good standing can review terms starting Monday, June 15, 2026. The company will then contact eligible publishers in the following weeks.

Udio’s two-year journey is dizzying. In June 2024, the RIAA sued Udio and its rival Suno on behalf of Universal Music Group, Sony Music and Warner Music Group, for “mass infringement” of recordings. The case was then unwound piece by piece. UMG settled in October 2025, Warner in November 2025. The licensing body Merlin followed in January 2026, then publisher Kobalt in April 2026. Sony remains the only major still in litigation with Udio at this stage.

Israelite thanked Udio co-founder and CEO Andrew Sanchez, who attended the meeting. He stressed one key point. Udio joining the table changes the balance of power with other AI players.

“Today, we are announcing the first-ever industry-wide licensing deal with a major AI music company.” — David Israelite, NMPA, June 10, 2026

KLAY, the exception that secures licenses before launch

The second agreement, in principle, is with KLAY. Israelite described the startup as a platform that “reimagines listening with immersive, interactive tools”. Its large music model is trained entirely on licensed music. The NMPA deal is expected later in summer 2026. Member publishers will then receive instructions to opt in.

KLAY’s edge is the timing. The company is securing licenses before launching its consumer service. That stance is rare in the AI music licensing landscape, where the playbook is usually to ship a product first and deal with the legal fallout later. Co-founders Ary Attie (CEO) and Thomas Hesse attended the meeting.

KLAY had already signed deals with the three majors UMG, Sony and Warner in November 2025. The NMPA agreement adds the publishing layer. That covers the rights to compositions and lyrics. The platform now locks in the full rights chain ahead of launch.

The 50/50 songs vs recordings split: a publisher win

The most political point in the Udio deal is the revenue split. For the first time, an AI licensing agreement values compositions and recordings equally. Income from AI training is split 50/50 between sound recordings and compositions. That is parity the NMPA has demanded from the start. The majors had always refused it in prior negotiations.

The stakes are not academic. So far, the majors’ AI revenue had followed the same logic as classic streaming. Recordings there capture roughly two-thirds of the value, publishing the remaining third. On model training, the NMPA argued for a different read. The song — the melody, the lyrics, the structure — is at least as important as the master. It is what AI music licensing models actually learn and imitate.

“Songs are just as important, if not more, than sound recordings when it comes to AI training.” — David Israelite, NMPA, June 10, 2026

This publisher win extends the dynamic seen with the UMG-WMG deals around Stable Audio 3.0 earlier in June. It also adds a missing piece. Songwriters and publishers, long left behind labels, are back in the negotiation.

AI Songs Summit and streaming fraud: the fight continues

Israelite used the meeting to restate the NMPA’s doctrine. The lawsuits are not going away. He announced an inaugural AI Songs Summit, scheduled for Nashville in September 2026. The event will bring publishers, collecting societies and songwriter groups together to set best practices against fraud and the malicious use of AI. Digital services are also invited.

The fraud picture is grim. Israelite cited two striking numbers. Apple Music flagged around 2 billion fraudulent streams on its platform in 2025. And Deezer now sees 75,000 fully AI-generated tracks land on the platform each day as of April 2026, up from 60,000 in January. That volume represents about 44% of new daily uploads. The NMPA boss went further. He called streaming fraud “a national security issue”, citing money laundering on behalf of organized crime.

Chief Legal Officer Danielle Aguirre reinforced the message. She brought up the Copyright Royalty Board proceeding. That body will set US mechanical streaming rates for the 2028-2032 period. The legal battle is therefore being fought on three fronts at once: AI licensing, fraud, and regulated rates.

“Litigating against bad AI actors and licensing good AI partners is not in conflict. NMPA will do both. And for companies that don’t take this approach, you know it’s coming.” — David Israelite, NMPA, June 10, 2026

AI music licensing: what changes for independent artists worldwide

The NMPA deal targets the US market on paper. But its ripple effects cross borders quickly. Three consequences are already visible for the independent ecosystem worldwide.

For the independent artist, the signal is clear. AI music licensing platforms that respect copyright now exist. Choosing Udio or KLAY instead of a service that scrapes music without permission becomes a sound economic choice. The revenue paid by licensed platforms eventually flows back to songwriters through collecting societies. A writer registered with a national collecting society can, over time, see a fraction of US AI revenue land in royalty statements.

For the indie label, the 50/50 precedent is a lever for future deals. Indies can now rely on the NMPA position. They can demand the same parity with AI platforms knocking on their door. The rule is now set, and it will become the market reference.

For the publisher or distributor outside the US, the calendar is tightening. Negotiations with Udio and KLAY in Europe, the UK and other regions will open in the coming months. They will likely go through bilateral deals between local publishers and AI platforms, or through national collecting societies. Getting ahead of that work beats accepting the US terms wholesale.

The band.stream angle: own your data first

This shift confirms a deeper trend. Artists and labels that track their audience precisely are in a stronger position. AI music licensing revenue, like DSP revenue, will end up measured in clicks, listens and attributed conversions. Clean tracking is no longer a nice-to-have. It is a prerequisite: Meta Pixel, GA4, cross-platform attribution, and a built-in consent manager for the EU.

That is exactly what band.stream delivers on the SmartLink and music marketing side. The SaaS consolidates the tools artists already use into one dashboard. SmartLinks, Meta and Google ads, built-in analytics, all for €5 per month on the Pro plan. Data stays hosted in Germany via IONOS, outside the reach of the US Cloud Act, under French CNIL jurisdiction.

The music industry does not yet know exactly what AI training will pay rights holders. One thing is certain. Those who control their audience today will capture these new flows better tomorrow. The Lyria 3 case at YouTube made it clear last week. Without contract and data control, revenue ends up somewhere else.

👉 Request access to band.stream — open alpha, no credit card required.