German Court Rules OpenAI Must Pay for Using Copyrighted Song Lyrics in AI Training

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A Munich court sided with German music rights society GEMA against OpenAI, ruling that the AI company violated copyright laws by using protected song lyrics to train ChatGPT without proper licensing. The landmark decision could set a precedent for AI regulation in Europe.

Court Ruling Against OpenAI

A Munich Regional Court delivered a significant ruling on Tuesday, siding with Germany's music rights society GEMA in a closely watched copyright case against OpenAI. Presiding judge Elke Schwager ruled that OpenAI violated German copyright laws by using protected song lyrics to train its AI models without proper authorization

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Source: Silicon Republic

Source: Silicon Republic

The court found that OpenAI trained its AI on protected content from nine German songs, including hits by best-selling musician Herbert Groenemeyer such as "Maenner" and "Bochum"

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. The case also involved lyrics from other popular German artists including Kristina Bach and Rolf Zuckowski

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GEMA's Arguments and Evidence

GEMA, which represents more than 100,000 composers, songwriters, and publishers in Germany, argued that OpenAI's ChatGPT reproduces lyrics from copyrighted German songs without authorization . The organization alleged that ChatGPT had "memorized" these lyrics in its datasets and could reproduce "large parts" of the songs "verbatim" when prompted by users

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The court found that the disputed lyrics are "reproducibly" contained in OpenAI's GPT-4 and GPT-4o models after being memorized during training . According to the court statement, both the memorization in the language models and the reproduction of song lyrics in the chatbot's outputs constitute infringements of copyright exploitation rights.

Source: euronews

Source: euronews

OpenAI's Defense Strategy

OpenAI mounted a defense arguing that its language models do not store or copy specific training data, but rather learn patterns and generate new outputs based on those patterns

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. The company attempted to shift responsibility to individual users, claiming that lyrical outputs could not be generated without user input through prompts

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Source: GameReactor

Source: GameReactor

However, the court firmly rejected this argument. "The defendants, not the users, are responsible for this," the court stated. "The language models operated by the defendants significantly influenced the outputs; the specific content of the outputs is generated by the language models"

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Financial Implications and Damages

Judge Schwager ordered OpenAI to pay damages for the use of copyrighted material, though the exact figure was not disclosed in the initial ruling

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. According to reports, the court ordered OpenAI to compensate GEMA for all damages, including unpaid royalties and legal fees, plus interest

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. If the ruling holds, OpenAI could be forced to pay hundreds of thousands of euros to the music rights organization.

Broader Implications for AI Industry

This case represents the first of its scale in Europe and could set a significant precedent for how generative AI systems are regulated across the European Union, particularly regarding artistic content

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. GEMA is actively seeking the establishment of a licensing framework that would require AI developers to pay for the use of musical works in both training and output phases

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GEMA CEO Tobias Holzmueller emphasized the significance of the ruling, stating: "The internet is not a self-service store, and human creative achievements are not free templates. Today, we have set a precedent that protects and clarifies the rights of authors"

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. The organization has offered an AI licensing model since 2024, designed to allow technology companies to train on its catalog legally while ensuring fair compensation for artists.

OpenAI's Response and Next Steps

OpenAI expressed disagreement with the ruling and indicated it is considering its options for appeal. An OpenAI spokesperson stated: "The decision is for a limited set of lyrics and does not impact the millions of people, businesses, and developers in Germany that use our technology every day"

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. The company emphasized its commitment to respecting creators' rights and mentioned ongoing productive conversations with organizations worldwide to ensure they benefit from AI technology opportunities.

The decision can be appealed, and both OpenAI and GEMA indicated they would issue further statements regarding the verdict

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. GEMA has also filed a parallel lawsuit against US-based AI music generator SunoAI, with that case expected to be heard early next year

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