GEMA is the first collecting society to file a lawsuit against AI providers

GEMA to initiate legal proceedings against a provider of generative AI. This was announced in a statement by Tobias Holzmüller, CEO of GEMA, published in the latest issue of Politik & Kultur, a publication of the German Cultural Council.

The emergence of generative artificial intelligence has had a profound impact on the music industry and other sectors. AI tools are proving to be valuable aids in the creative process.

Nevertheless, there is a risk that this technology could replace aspects of creative work. The statement explicitly mentions background music in this context. A study commissioned by GEMA in cooperation with its French partner organization SACEM shows that by 2028, around 27 percent of copyright holders' revenues could be diverted to technology companies.

Ironically, the industry uses the work of creative professionals to develop competitive products that can deprive them of their livelihoods. How does a collecting society with over 95,000 members react to such fundamental changes?

Since the economic success of the AI ​​industry relies heavily on content created by creative individuals – OpenAI, , now generates annual revenue of over $2 billion – it is only logical to demand compensation for the use of protected rights in order to offset any damages incurred.

GEMA presents licensing model

GEMA has designed a licensing model that provides for compensation for training AI models and systems, as well as for content generation and monetization. However, the industry remains hesitant, as numerous legal questions surrounding generative artificial intelligence remain unresolved. These include, among other things, the reservation of rights for text and data analyses, the transparency obligations of providers, the territorial applicability of copyright law, and the protection of generated content.

Legal situation in the USA and Europe with a crucial difference

This legal situation, which is indeed very complex, often obscures the essential point: In the US, there is currently a debate about whether training AI models triggers a compensation obligation or whether this is possible without permission or compensation under the so-called fair use doctrine of US law. In continental Europe, however, the legal situation is clearer: Training AI models with copyrighted works and their subsequent use must be compensated if the rights holders have reserved this right.

All major rights holders have declared such a reservation. Nevertheless, no remuneration is being paid. It is undisputed that existing law must first be interpreted to create clarity for all parties involved – be they rights holders, authors, or national and international policymakers

so Holzmüller said in his statement.

The lawsuit against OpenAI

GEMA, the world's leading collecting society, has sued OpenAI, the best-known provider of chatbots, in the Munich Regional Court for the unauthorized use of its rights. This marks a first step towards protecting its interests and, in particular, those of its members. The chatbot ChatGPT was able to reproduce the original lyrics of numerous songs.

This proves not only that these are licensed processes, but also that the underlying model was trained on these works and that copies exist in the trained systems. This finding is crucial because it shows that the lack of transparency in the training process prevents rights holders from enforcing their claims.

It is no coincidence that the transparency obligations of providers are at the heart of the current debate in Brussels. The newly established AI Office is tasked with creating a template for the information providers must provide under the AI ​​Act . They are required to submit a sufficiently detailed summary of their training process to the authorities

The tech lobby is vehemently trying to prevent greater transparency, primarily citing the burden of reporting requirements. It remains to be seen whether this specious argument will gain political traction. After all, it is obvious that providers must document the data they use in detail; the success of a system ultimately depends on the quality of that data.

The refusal to create transparency merely serves to conceal copyright infringements that have been committed.”

Holzmüller clarifies.

Copyright law has consistently had to adapt to new technological challenges. This has often been a lengthy and painful process, ultimately creating a balance between rights holders and users. This is necessary because both sides are interdependent.

It is crucial that the incentive for innovation is not lost. GEMA's lawsuit represents an important step in advancing this process.

You can read the full article in the newly released issue 12/24-1/25 of Politik & Kultur.

Other topics in this issue:

• Culture under pressure:
  Lack of federal budget, underfunded states and municipalities – a plea for creative solutions to cultural financing
• Trust in Museums:
  A study by the Institute for Museum Research makes it clear: Museums are among the most trusted institutions.
• Cultural populism:
  After the election, Slovakia is experiencing drastic interventions, influence and personnel decisions in the cultural sector.
• "Let's Remember!"
  Computer and video games can contribute to conveying history and to a vibrant remembrance in the present.
• Focus on Media Policy:
  Voices from politics, media and civil society on broadcasting reform

Politik & Kultur is the newspaper of the German Cultural Council. It is edited by Olaf Zimmermann and Theo Geißler. It is published ten times a year and is available in railway station bookstores, at large newsstands, at airports, and by subscription: single issue price: €4.00, subscription price: €30.00 (including postage), student subscription price: €25.00 (including postage).

Joachim Rodriguez y Romero

Owner and Managing Director of Kunstplaza . Publicist, editor, and passionate blogger in the fields of art, design, and creativity since 2011. Graduated with a degree in web design from university (2008). Further developed creative techniques through courses in freehand drawing, expressive painting, and theatre/acting. Profound knowledge of the art market gained through years of journalistic research and numerous collaborations with key players and institutions in the arts and culture sector.

www.kunstplaza.de