Munich Court: ChatGPT’s Use of Song Lyrics Infringes Copyright

A Munich regional court has ruled on ChatGPT copyright, finding that the AI’s use of song lyrics violates German copyright law. Music publishers sued after ChatGPT reproduced full or substantial lyrics, and the court held this goes beyond fair use and infringes authors’ rights. OpenAI’s transformative-use defense was rejected, and the court ordered removal or licensing of the disputed content. This landmark case underscores the importance of securing licenses for copyrighted text in AI training. It may set a global precedent, prompting stricter compliance and licensing practices for AI developers.
Neutral
As the ruling concerns AI training and copyright law rather than cryptocurrency or blockchain, it is unlikely to directly affect crypto market conditions. Traders may remain focused on regulatory developments in digital assets. Similar past legal decisions on tech IP have had minimal impact on crypto prices, suggesting neutral short-term and long-term market influence.