A Munich court has ruled against OpenAI for copyright infringement, finding the company used song lyrics to train its ChatGPT models without permission. The case, initiated by Germany’s GEMA, involved nine German songs, including those by Herbert Grönemeyer. The Munich I Regional Court determined that OpenAI violated the German Copyright Act, rejecting its defense of fair use. This ruling sets a precedent that requires AI firms to obtain licenses for copyrighted material. OpenAI’s practices were scrutinized as the court highlighted unlawful memorization and reproduction of lyrics, enforcing potential fines of up to €250,000 per infringement. Industry leaders see this decision as a significant step for protecting creators in the digital age as it breaches the tension between AI innovation and intellectual property rights. The ruling could influence EU regulations and compel AI companies to rethink data sourcing, reinforcing the significance of transparent licensing agreements for future collaborations.
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