The German music copyright organization GEMA filed a lawsuit against OpenAI on November 13 at the Munich District Court, becoming the first copyright collective management organization in the world to take legal action against an artificial intelligence provider.
GEMA accuses OpenAI's ChatGPT of reproducing copyrighted song lyrics without obtaining proper licenses or paying creator fees. The lawsuit targets not only OpenAI LLC in the United States but also OpenAI Ireland Ltd., which operates in Europe.
GEMA aims to address fundamental legal questions regarding how artificial intelligence companies use copyrighted materials through this lawsuit. Although the direct focus of the lawsuit is on song lyrics, the outcome could affect how AI companies handle all types of protected content, including services that generate audio files without permission.
GEMA's CEO Tobias Holtzmueller stated, "The songs of our members are not free raw materials for the business models of AI companies." GEMA also pointed out potential differences between U.S. and European laws. While U.S. courts may accept a "fair use" defense allowing certain unpaid uses, GEMA believes that European regulations are stricter: if rights holders claim their works are protected, AI companies must obtain licenses to train on them.
To this end, GEMA recently proposed a licensing framework for artificial intelligence systems, requiring a 30% share of the net revenue from AI models. This plan covers the initial training of AI and the subsequent use of generated music content, aiming to provide compensation to creators.
A study by GEMA indicates that generative AI services could put 27% of songwriters' income at risk. According to the survey, 71% of creators believe AI threatens their economic stability. Despite OpenAI recently winning a copyright lawsuit in the U.S., the legal landscape regarding AI training, generation, and copyright data remains complex. In the U.S., major music companies like Sony are also suing AI music generators, and the disputes continue.
Key points:
📄 GEMA filed a lawsuit in Munich, accusing OpenAI of using song lyrics without permission.
⚖️ GEMA emphasizes that European laws are stricter, requiring AI companies to obtain copyright licenses.
💰 GEMA proposed a licensing framework, demanding 30% of the net revenue from AI models as compensation.