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August 10, 2026

Marked by ESCA Legal - August 10, 2026

UMG contests AI licensing pay claims, an appeals court narrows keyword-ad liability, and music labels target Musi.

Marked. - Issue 039

UMG contests AI licensing pay claims, an appeals court narrows keyword-ad liability, and music labels target Musi. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
Issue No. 039
August 10, 2026
New York
ESCA Legal
 
 
Marked.
The IP Briefing · by ESCA Legal
 

TOP STORY: UMG Seeks Dismissal of Musicians' Udio Licensing Suit

Universal Music Group asked a New York federal court to dismiss the American Federation of Musicians' lawsuit over the licensing of union members' recordings to Udio for generative AI uses.
§The union alleges that licensing recordings for AI training qualifies as a new use under its collective bargaining agreement and requires compensation.
§UMG argues that the agreement sets no payment rate for AI training and points instead to future bargaining over a new rate.
§The motion follows UMG's settlement and licensing agreement with Udio.
§Discovery is stayed while the dismissal motion and collective bargaining discussions proceed.
Continue reading →
§ ESCA Takeaway
This issue tracks how rights holders are testing newer distribution and advertising channels against established legal frameworks, from AI music licenses and search ads to streaming apps that draw from platform catalogs.
 
More IP Stories
 
§ Trademark · Filed

Eleventh Circuit Limits Trademark Liability for Keyword Bids

The Eleventh Circuit upheld a trademark infringement judgment and injunction for Deltona Transformer against NOCO, while holding that bidding on a rival's keyword cannot establish infringement by itself.
§The dispute concerns Deltona's Battery Tender mark for vehicle battery chargers.
§The court found that a hidden search keyword is not displayed to consumers and cannot alone create a likelihood of confusion.
§Other evidence supported the infringement judgment and injunction against NOCO.
§The panel reversed the state-law damages award because Deltona did not plead the type of actual damages required by the statute.
Why it matters
The ruling separates the act of buying a competitor's search term from the content consumers actually see. Brand owners still may pursue confusing ads, but keyword bidding alone does not establish infringement in the Eleventh Circuit.
Continue reading →
 
§ Copyright · Update

Sony and UMG Bring Copyright Action Against Musi

Sony Music Group and Universal Music Group launched Canadian legal proceedings alleging that the Musi streaming app makes protected recordings available from YouTube without authorization.
§The action alleges that Musi circumvents technical protections used by YouTube and monetizes access through advertising and subscriptions.
§Musi does not maintain its own licensed music catalog and instead routes users to audio from YouTube videos.
§Apple removed Musi from the App Store in 2024 after complaints from rights holders and YouTube.
§The app remains accessible to users who downloaded it before removal.
Why it matters
The case extends music enforcement beyond direct file hosting to an app built around access to another platform's catalog. It also places technical circumvention, licensing, and app-store controls in the same dispute.
Continue reading →
QUICK HITS
§ CopyrightA federal judge transferred independent artists' copyright class action against Udio from Illinois to the Southern District of New York and left Udio free to renew its dismissal motion there. [source]
§ PatentSamsung and Netlist entered a five-year patent cross-license that ends their outstanding memory technology litigation and creates a broader strategic alliance. [source]
 
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