A Munich court on Tuesday ruled in favor of Germany’s music rights society, GEMA, in a high-profile copyright dispute with U.S.-based artificial intelligence company OpenAI. The decision prohibits OpenAI from using song lyrics without a proper license and orders the firm to pay damages for unauthorized use of copyrighted material.

GEMA had argued that OpenAI’s chatbot, ChatGPT, reproduces lyrics from protected German songs without authorization. The society claimed that ChatGPT’s AI was trained on copyrighted content from the repertoire of its approximately 100,000 members, including prominent musicians such as Herbert Groenemeyer.

Presiding judge Elke Schwager emphasized that the use of such material without licensing infringes on the rights of the original creators. The ruling could have far-reaching implications for how generative AI systems are regulated across Europe, particularly concerning the use of copyrighted works in AI training and outputs.

OpenAI responded by stating that GEMA’s arguments reflected a misunderstanding of how ChatGPT operates. Both parties indicated they would issue formal statements regarding the verdict later on Tuesday.

The case also raises the possibility of establishing a licensing framework for AI developers, potentially requiring payment for the use of musical works in both training and generated content. OpenAI has the option to appeal the decision, leaving the wider implications for AI copyright law in Europe still under consideration.