Universal Music Group is suing digital music distributor DistroKid, alleging the company spreads "AI-generated 'slop' that siphons revenue and listeners from the legitimate artists and rightsholders."

The major record label accuses DistroKid of both "deceptive trade practices and blatant copyright infringement," according to a complaint filed in federal court in Delaware.

"The current digital music economy is no longer a healthy, functioning one. It has been co-opted by those trying to pass off mass AI-generated, SEO-optimized and copyright-infringing slop as music created and performed by a real human," the lawsuit states. "At the nexus of this problem sits DistroKid."

Universal Music Group is seeking statutory damages and injunctive relief for violations of its exclusive rights for sound recordings.

Founded in 2013 and based in New York, DistroKid lets independent artists upload music to Spotify, Apple Music, TikTok "and 150+ platforms" for an annual fee. Private equity firm CVC Capital Partners agreed in July to buy a majority stake; Spotify holds a minority one. DistroKid did not respond to a request for a comment.

Universal Music Group says DistroKid promises to distribute only "tracks that are original, authorized and owned by its account holders," while doing little to screen out bad actors. One of its highest-volume users, "Lofi Chill," released 4,562 tracks in a year — a "pace no human musician could achieve," the complaint says.

"Every stream captured by a deceptive AI-generated or infringing track diverts listeners and revenue away from real artists," reads the complaint. "Consumers are misled into believing they are listening to genuine music and supporting working artists when they are in fact enriching bot farms and infringers."

The label also alleges DistroKid distributes unlicensed "remixes or speed-altered versions of popular sound recordings," plus infringing album art, unlicensed samples and instrumentals of hit songs with new vocals dubbed over them.

That echoes the $500-million case Universal Music Group brought against rival distributor TuneCore and its parent, Believe, in 2024 and settled in April. The label has since become a distributor itself, as its subsidiary Virgin Music Group closed a $775-million deal in February for Downtown Music Holdings, owner of CD Baby and FUGA, a digital music distributor.

The lawsuit lands as the industry is working out how to navigate artificial intelligence on music streaming platforms. Spotify and Apple Music now tag AI-generated tracks; Tidal went further in July, cutting off royalties for songs it identifies as entirely AI-made.

Universal Music Group has cut its own AI deals. Over the last twoyears, it has inked licensing and product partnerships with Udio, Nvidia and Stability AI, and last week, ElevenLabs. Most of the deals followed litigation. Universal Music Group, Sony and Warner sued Udio and Suno in 2024 over training using their recordings without permission. Universal Music Group settled with Udio, and its case against Suno is pending.

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