Court rules that OpenAI violated German copyright law; ordered it to pay damages

A German court has ruled that OpenAI’s ChatGPT violated national copyright laws by training its large language models on licensed musical works without authorisation, according to multiple reports, including The Guardian.

The lawsuit was filed last November by GEMA, Germany’s leading music rights organisation representing over 90,000 songwriters, composers, and publishers. The court ordered OpenAI to pay an undisclosed amount in damages and to ensure future compliance with copyright regulations.

“Today, we have set a precedent that protects and clarifies the rights of authors: even operators of AI tools such as ChatGPT must comply with copyright law,” said GEMA CEO Tobias Holzmüller, calling the decision “the first landmark AI ruling in Europe.”

A Landmark for AI and Copyright in Europe

The ruling marks one of the first major legal setbacks for an AI company in Europe regarding the use of copyrighted training data. It could have far-reaching consequences for other AI developers operating in the region.

OpenAI stated that it disagrees with the ruling and is “considering next steps,” indicating that an appeal may follow.

GEMA, meanwhile, celebrated the decision as a victory for artists and creators, emphasising that it reinforces the principle that AI systems cannot use creative works without proper licensing.

A Growing Wave of AI Copyright Lawsuits

The case adds to a growing list of legal challenges facing OpenAI and other AI developers over how their models ingest and reproduce creative works.

In recent months, The New York Times, individual authors, and media organisations have filed lawsuits claiming that OpenAI’s model training infringes on intellectual property rights.
European regulators have also been drafting AI transparency laws that would require companies to disclose the copyrighted material used in model training.

Legal experts say the GEMA ruling could set a precedent for future EU cases, pressuring companies to establish licensing frameworks for AI model training.