Landmark AI Ruling: German Court Orders OpenAI to Pay Damages for Song Lyrics

A German court has ruled against OpenAI. The decision involves a major copyright case. The court found that ChatGPT illegally used song lyrics. It used them to both train its AI models and generate outputs for users.

The lawsuit was filed by GEMA. GEMA is Germany’s music rights organization. It represents over 100,000 composers and publishers. GEMA successfully argued that OpenAI’s use of copyrighted lyrics, including hits by musician Herbert Groenemeyer, was unauthorized.

The court, located in Munich, ordered OpenAI to pay damages. This ruling means AI developers must get licenses. The judges rejected OpenAI’s defense. OpenAI had claimed its language models did not store specific content. It also argued that users, not the company, were responsible for the output.

GEMA’s CEO called the ruling a clear precedent. He stated that the internet is not a “self-service store.” This verdict is seen as a victory for creators across Europe. It will likely force AI companies to negotiate fair compensation for intellectual property. OpenAI has stated it disagrees with the ruling and is considering an appeal.