A landmark copyright battle is unfolding in Munich as GEMA, Germany’s largest music rights society, takes OpenAI to court over the unlicensed use of song lyrics in training generative AI systems. The case, which opened September 29, is the first of its kind in the European Union and could set a global precedent for how artificial intelligence interacts with copyrighted music.
The Case Against OpenAI
According to Billboard, the lawsuit centers on whether AI companies like OpenAI need licenses to copy and ingest protected works — in this instance, lyrics — for training their models. GEMA argues that OpenAI’s chatbot, ChatGPT, was trained on lyrics from its repertoire of more than 100,000 members without authorization or compensation. In some cases, simple prompts reportedly led the chatbot to reproduce entire copyrighted lyrics.
While U.S. lawsuits against platforms like Suno and Udio hinge on “fair use” — a doctrine that doesn’t exist in the EU — the German court will apply EU copyright law, making t
his case especially important. If the court rules in GEMA’s favor, the decision could ripple across the EU and reshape negotiations between AI developers and rightsholders.
GEMA’s Position
In a press release, GEMA emphasized that it is the first collecting society worldwide to file suit against an AI provider for unlicensed use of music. CEO Dr. Tobias Holzmüller stated:
“Our members‘ songs are not free raw material for generative AI systems providers’ business models. Anyone who wants to use these songs must acquire a license and remunerate the authors fairly.”
Supervisory Board Chairman Dr. Ralf Weigand underscored the stakes for working artists:
“GEMA’s lawsuit sends an important signal: the livelihood of us creative professionals is at stake.”
GEMA has already introduced a licensing model for generative AI, aiming to ensure creators receive fair participation when their works are used in training systems or in AI-generated content. The organization also released an AI Charter outlining principles of transparency, sustainability, and intellectual property protection.
What’s at Stake for Music and AI
From a financial standpoint, damages in Germany won’t approach the high statutory penalties possible in U.S. courts. Instead, GEMA’s main goal is to compel AI companies to license copyrighted works. For the music industry, the case could define the balance of power in future licensing negotiations.
If GEMA succeeds, AI developers may be forced to pay for the right to use lyrics and music in training models, giving songwriters and publishers a seat at the table. If OpenAI prevails, the industry faces the risk of AI systems continuing to exploit copyrighted content without compensation.
Either way, the outcome will resonate far beyond Germany. As WMV tracks the intersection of music and technology, this case marks the beginning of a new era: one where the rules governing AI could shape the future of creativity itself.
