Germany’s GEMA Sues U.S.-Based Generative AI Company Over Copyright Infringement

January 21, 2025 E Jazz Reporter

Entertainment

The PRO says Suno is using their members’ works without consent and profiting from them.

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BERLIN — In June, the three major labels sued the generative AI music companies Udio and Suno for training their software on copyrighted music without a license. Now, GEMA, the German PRO, is also taking legal action against Suno, in a case filed today (Jan. 21) in the Munich Regional Court.

In an announcement, GEMA said that it documented that the Suno system outputs content that “largely corresponds to world-famous works whose authors GEMA represents,” including “Forever Young” by Alphaville, “Mambo No. 5” by Lou Bega and “Daddy Cool” by Milli Vanilli creator Frank Farian, among others.

“AI providers such as Suno Inc. use our members’ works without their consent and profit financially from them,” said GEMA CEO Tobias Holzmüller in the announcement. “GEMA is endeavoring to find solutions in partnership with the AI companies. But this will not work without adhering to the necessary basic rules of fair cooperation and, above all, it will not work without the acquisition of licenses.”

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This case is very different from the litigation Suno faces in the U.S., which is spearheaded by the RIAA and involves recorded music owned by the major labels. Assuming that Suno has indeed trained its software on copyrighted recordings, as seems likely, that case will involve a determination of whether this would qualify as “fair use” – the legal doctrine that allows the unlicensed use of copyrighted works in some situations, including quotation and criticism. That can be notoriously complicated and it involves both specific facts and case law. It can also involve a great deal of money, since statutory damages for willful copyright infringement can reach $150,000 per work.

GEMA’s case involves the copyrights to songs, which it represents as a PRO, rather than those of recordings. The relevant legislation would be the European Union’s AI and Copyright directives, which allow copyright owners to “opt out” of having their works scanned in order to train AI software, and require “fair remuneration” if they are used. This is one of the first big cases involving this issue in Europe, as well as the first against a big generative music company. Any damages would almost certainly be more modest than they would in the U.S., but the case could establish whether AI companies need to license copyrighted works for software training purposes. Whatever the result, it is easy to imagine it being appealed to higher courts in Germany.

In November, GEMA also sued OpenAI for using lyrics of songs to which GEMA has rights in order to train its AI software. That case, also filed with the Munich Regional Court, only involves lyrics.

In its announcement, GEMA said Suno “outputs content that obviously infringes copyrights.” However, the issue in this case is not this output, but rather the music Suno has scanned during the process of training its software. If Suno has indeed scanned music for training purposes, it would presumably be infringing the rights in the songs as well as the recordings. Although a U.S. court could determine that this is fair use, that doctrine is a feature of Anglo-American law – the UK and British Commonwealth countries have “fair dealing,” which is similar but more limited – European laws are more strict. The EU Copyright Directive lays out “exceptions and limitations” to copyright, but it also provides authors and rightsholders the ability to opt-out of having their work scanned – or, as is more likely, to opt out until a license agreement is reached.

“The lawsuit against Suno Inc. is part of an overall concept of measures taken by GEMA,” said GEMA general counsel Kai Welp in the announcement of the case, “at the end of which there will be fair treatment of authors and their remuneration.”

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