In today's rapidly advancing world of artificial intelligence, copyright issues are becoming a new challenge for AI companies. On November 13, 2024, the German music copyright organization GEMA filed a lawsuit against OpenAI in the Munich District Court, becoming the first copyright collective management organization in the world to take legal action against an AI supplier.
GEMA pointed out that OpenAI's ChatGPT has unlawfully copied and used copyrighted lyrics without obtaining proper licenses and paying royalties. The lawsuit targets both OpenAI LLC in the United States and OpenAI Ireland Ltd, which is responsible for European operations.
Dr. Tobias Holzmüller, CEO of GEMA, emphasized, "The works of our members are not free raw materials for the business models of AI companies." According to GEMA's research, generative AI services could lead to a loss of income for songwriters of up to 27%. For GEMA and French copyright organization SACEM members, this could mean a loss of up to 2.7 billion euros by 2028. The survey also revealed that 71% of creators believe AI threatens their financial stability.
This lawsuit not only involves issues related to the use of lyrics but may also impact how AI companies handle all types of protected content, including unauthorized audio file generation services. GEMA specifically highlighted the differences between U.S. and European legal systems: while U.S. courts may accept a "fair use" defense allowing certain free uses, European regulations are stricter, requiring AI companies to obtain authorization from copyright holders to use protected works for training.
To address this issue, GEMA recently proposed an AI system licensing framework, requiring AI models to pay 30% of their net income as copyright fees. This plan covers both the initial training of AI and the subsequent use of AI-generated music content, aiming to ensure that creators receive fair compensation from all commercial benefits derived from their works.
Although OpenAI recently won a copyright lawsuit in the U.S. based on a "fair use" defense, the legal environment surrounding AI training, generation, and copyright data usage remains highly complex. The outcome of this lawsuit could have profound implications for the future development of the AI industry, particularly in balancing technological innovation with intellectual property protection.