# Suno's IPO Roadblocks

> Suno faces legal battles with music giants as it prepares for potential IPO.
- Title: Suno's IPO Roadblocks · Musicbusinessworldwide | Shortify
- Summary: Suno faces legal battles with music giants as it prepares for potential IPO. Suno, valued at $5.4 billion, is building for an IPO but faces ongoing copyright…
- Keywords: suno, ipo, copyright, music, legal, united states, copyright infringement, fair use, statutory damages, umg, business, Suno's
- Source: Musicbusinessworldwide — https://musicbusinessworldwide.com/with-a-new-cfo-three-licensing-deals-and-775m-raised-whats-stopping-5-4b-valued-suno-from-an-ipo
- Read time: 2 min
- Topics: suno, ipo, copyright, music, ai, legal, united states, copyright infringement, fair use, statutory damages, umg, business
## Suno Launches v6
Suno launched its v6 AI music model on September 9 with Warner Music Group, BMG, and Believe as licensed rightsholder partners.
## Suno's Valuation and Growth
Suno was valued at $5.4 billion in June, passed 2 million paying subscribers in February, and says more than 100 million people have used the platform.
## New CFO Appointed
Suno hired Cherry Miao as its first CFO with pre-IPO experience, who spent three years at data company Hightouch.
## ElevenLabs' IPO Strategy
ElevenLabs appointed Ethan Tandowsky as CFO on September 8, aiming for an IPO around 2028 with a $22 billion valuation.
## Legal Battles with Music Giants
Suno faces copyright lawsuits from Warner Music Group and Sony Music Entertainment over alleged infringement of 60,202 recordings.
## First Lawsuit Details
The first lawsuit, filed in June 2024, alleges mass infringement of copyright with potential statutory damages of up to $150,000 per work.
## Second Lawsuit Targets v6
The second lawsuit, filed on September 18, alleges v6 was built on outputs of earlier models, inheriting infringement from previous models.
## Suno's Defense
Suno claims v6 was trained on interactions including creations and preference signals from its community, not infringing recordings.
## Italian Regulatory Investigation
Italy's competition authority opened an investigation into Suno's terms of service, claiming they may create unfair contract terms for consumers.
## Suno's Financial Position
Suno has raised more than $775 million in total and claims $300 million in annual recurring revenue as of February.
## Investor Backing
Suno's investors include Bond Capital, IVP, Union Square Ventures, and Forerunner, firms with experience in taking companies public.
## Suno's Product Strategy
Suno launched Speech, a model generating spoken voice and background music together, to expand beyond music into other forms of human expression.
## Legal Challenges in Europe
A Munich court ruled Suno infringed copyright in a case brought by German collecting society GEMA, rejecting fair use.
## Suno's Legal Position
Suno argues any infringement was innocent, which could cut statutory damages to as little as $200 per work.
## Suno's Next Steps
Suno is evaluating options including an appeal after a German court ruled it infringed copyright in a case brought by GEMA.
## IPO Timeline Uncertainty
Suno's IPO timeline remains unclear as it faces ongoing legal battles with music giants over copyright infringement claims.
## Key takeaway

Suno, valued at $5.4 billion, is building for an IPO but faces ongoing copyright lawsuits from two major music companies over AI music models.