OpenAI has lost a landmark copyright infringement case in Germany after a Munich court ruled that its ChatGPT language model violated authors' rights laws by using popular German song lyrics without proper licensing or royalty payments.
Judge Elke Schwager of the Munich District Court I said OpenAI must pay damages for the unauthorized use of copyrighted lyrics, though the amount has not yet been determined. The ruling marks the first major European judgment addressing AI models' use of copyrighted works in training datasets.
The lawsuit was brought by GEMA, Germany's music rights organization, which used nine songs as examples, including "Männer" by Herbert Grönemeyer, "In der Weihnachtsbäckerei" by Rolf Zuckowski, and "Atemlos" by Kristina Bach. GEMA argued that the case underscored the need for AI developers to negotiate fair licensing fees for creative works used in training AI systems.
In her remarks, Judge Schwager criticized OpenAI for ignoring "a clear legal situation," noting that "anyone who uses external content must pay for it or obtain permission." She described OpenAI as "highly intelligent defendants who have created modern technologies but overlooked basic copyright obligations."
OpenAI disputed the allegations, claiming that ChatGPT does not store or reproduce specific texts, but instead generates outputs probabilistically from training data. The court, however, rejected this argument, stating that reproducing long and complex lyrics could not be considered coincidental.
In response, OpenAI said it disagrees with the verdict and is considering an appeal, reaffirming its commitment to working with rights organizations worldwide.
The German Journalists' Association - DJV welcomed the ruling, calling it "a partial victory for authors' rights." DJV chairman Mika Beuster said it strengthens the case for journalists and creators seeking compensation, adding that "the training of AI models is intellectual property theft."
Legal experts said the decision could have far-reaching implications across Europe, where copyright regulations are largely harmonized, and may pave the way for collective licensing agreements between AI developers and creative rights holders.
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