AI Lawsuits, Governance, and Collective Action

October 1, 2026

Allistair Elliott  -  AFM Vice President from Canada

Last month, I referenced the breach-of-contract lawsuit that was filed by the AFM against Universal Music Group (UMG) and Warner Music Group (WMG). The suit alleges the labels violated the Sound Recording Labor Agreement by failing to compensate session musicians following lucrative artificial intelligence (AI) licensing deals, which came on the heels of settlements reached with AI generators Suno and Udio.

Recently, in Canada, the Society of Composers, Authors, and Music Publishers of Canada (SOCAN) announced a lawsuit against Suno. The suit cites 150 Suno songs that are identical or nearly identical to works by Canadian creators, including Joni Mitchell of Local 47 (Los Angeles, CA), The Weeknd, The Tragically Hip, and others. SOCAN wants the AI company to comply with copyright law and for artists to have a say in how their works are used.

Nestled among the intellectual property and copyright questions and lawsuits, an almost unanimous voice emerged from a significant sector of AI tech giants, asking for governments to implement control and legislation. When tech leaders express concern over their own capabilities, governments must act immediately. Policymakers must establish a balanced framework that safeguards ethics and protections without stalling innovation.

With summer in the rearview mirror, AFM’s focus returns to key negotiations. Bargaining continues on a generative AI side letter with the Canadian Music Publishers Association (CMPA) to complement the Independent Production Agreement (IPA). Strategy also remains focused on Canadian broadcasters Rogers, Corus Entertainment, and Bell Media, alongside upcoming renewals for the TV Ontario Agreement (TVO) and ongoing AFM Sound Recording and Labour Agreement talks scheduled for early November.

AFM recording agreements provide a network of protections and future income streams for any recordings that you do. Last month’s International Musician provided an excellent breakdown of which contract you can use in various situations. Past IM editions can be accessed digitally on afm.org. If you are planning to record, or have a recording ready to release, contact your local and/or our Canadian Office for further assistance on how to make sure your music is protected to provide future income revenue.

Finally, the House of Commons Standing Committee released its 2026 budget recommendations, reflecting joint advocacy efforts by numerous stakeholders and unions across Canada. Industry-related recommendations include:

Recommendation 5: Amend the Copyright Act to adopt the Artist’s Resale Right for Canadian visual artists in secondary markets.

Recommendation 6: Enshrine CBC/Radio-Canada’s independence and establish stable statutory per capita funding aligned with G7 public broadcasters.

Recommendation 7: Require AI developers to obtain permission, compensate rightsholders, and disclose training data sources. Reject text/data mining copyright exceptions and modernize the private copying regime via a modest $3 per device levy.

Recommendation 8: Introduce a tax on internet service providers.

Recommendation 9: Fulfill financial commitments made at the Banff Summit.

Recommendation 10: Permanently increase the Canada Council for the Arts’ parliamentary appropriation.

Recommendation 11: Provide federal tax credits for synchronization licenses to incentivize using Canadian musical works in audiovisual productions.

Recommendation 12: Permanently increase annual funding for the Canada Music Fund.

Recommendation 14: Strengthen the Online Streaming Act by establishing Canadian content spending and exhibition requirements for digital platforms.

Recommendation 15: Expand access to cultural facilities in rural and urban communities.

Recommendation 129: Preserve and strengthen the cultural exemption during the Canada-United States-Mexico Agreement (CUSMA) review and international trade deals to protect domestic cultural policies against digital and AI technologies.

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