➤ Udio–Universal Settlement: Earlier this year, Universal Music Group sued AI music generator Udio for copyright infringement and unauthorized use of Universal’s recordings in training its system. See the complaint in UMG Recordings, Inc. v. Uncharted Labs, Inc. d/b/a Udio.com, No. 1:24-cv-04777 (S.D.N.Y.). This week, the parties announced a settlement under which Udio will license Universal’s catalog and develop a new AI music platform featuring authorized artist participation.

➤ The GUARD Act: Following a recent congressional hearing where parents testified about children’s use of chatbots, Senators Josh Hawley (R-MO) and Richard Blumenthal (D-CT) introduced the Guidelines for User Age-verification and Responsible Dialogue (GUARD) Act. The bill would require AI companies to verify user age before allowing chatbot access, prohibit minors from using AI companions that simulate romantic or emotional attachment, and mandate clear disclosures that users are interacting with a machine rather than a human or licensed professional.

➤ OpenAI Loses Motion to Dismiss in SDNY: The Southern District of New York denied OpenAI’s motion to dismiss copyright claims brought by authors challenging the use of their works in model training. The court highlighted an example in which ChatGPT generated a sequel to Game of Thrones, concluding that plaintiffs plausibly alleged “actual copying.”

➤ California Requires Police to Disclose AI Use: California enacted SB 524, requiring law enforcement agencies to disclose when artificial intelligence is used in generating police reports or evidence summaries. The statute reflects a growing statewide trend toward transparency requirements for AI in government.

➤ AI and D&O Insurance: For those tracking AI’s impact on insurance products, a recent article in Risk & Insurance provides an overview of emerging issues in D&O litigation involving AI-related disclosures, operational risks, and governance obligations.