AI Data Deal TrackerDeal brief
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Merlin signs an AI licensing partnership with Udio for independent music
Merlin, the digital licensing body for independent labels, agreed to let Udio train new models on music from participating members. Participation is opt-in.
LONDON, January 2026 Merlin and Udio announced an AI licensing partnership in January 2026 under which Udio will train new models on music licensed from participating Merlin members. Financial terms were not disclosed.12
Terms of the deal
Udio will use music from members who opt in, and the partnership includes safeguards intended to protect artists' rights, ensure consent and provide remuneration. Merlin represents independent labels and distributors in more than 70 countries and an estimated 15 percent of the global recorded music market.1 Members named include Ninja Tune, Sub Pop, Nettwerk, Armada Music and Secretly Group. No payment structure or duration was published.
The public record on this agreement is limited to the announcement and the press coverage cited below. The price is listed here as: Undisclosed. The status shown, Announced, reflects the most recent reporting available on October 22, 2026, and any later amendments are not captured.
Background
Udio had already settled with Universal in October 2025 and with Warner in November 2025. Later reporting described the Merlin agreement as the third of Udio's major licensing deals, followed by Kobalt in April 2026.2 Sony Music remained the only major label still litigating against Udio.2
What it means for data sellers
For independents, a collective agreement removes the need to negotiate individually with each AI company. Sellers should check whether past training is covered and how payments reach small members.
A seller comparing this deal with its own situation should ask what the buyer actually receives: raw data, a license to train, a license to display, or a right to build a product. Each is priced differently, and the answer should be written into the agreement rather than inferred from a press release.
How the deal came together
- Majors move first. Universal and Warner settled with Udio and signed licenses in late 2025.
- Indie sector. Merlin negotiated a deal for independent labels and distributors.
- Announcement. The agreement was reported as signed in January 2026.
- Safeguards. The partnership includes consent and remuneration safeguards.
Takeaways for companies with data
- Independent catalogs can license through a collective after the majors set the market.
- Consent and payment safeguards appear in the headline terms.
- Details such as rates and back payments are often withheld.
Sources
Every numbered reference above points to an entry here. Figures come from these pages as of the date shown at the top of the article. Where a source reports a number it got from unnamed people, the text says so.
- Merlin signs AI licensing partnership with Udio (Music In Africa, January 2026)
- After Universal, Warner, and Merlin deals, now Udio inks licensing agreement with Kobalt (Music Business Worldwide, April 2026)
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About the AI Data Deal Tracker
SellYourAIData tracks publicly reported sales and licenses of data to AI companies, with the price, terms and sources for each. Entries are checked against public reporting and updated as deals change. SellYourAIData was not involved in this deal. To ask what your company's data could sell for, get a free valuation. To report a deal, contact us.