German court finds $5.4B AI music startup Suno infringed copyright in European first

The Munich Regional Court ruled on July 31 that AI music generator Suno broke copyright law by training on protected songs without permission. The court found Suno had memorised and reproduced six songs represented by GEMA, Germany's state-mandated licensing body, in one of Europe's first binding decisions on AI-made music.

GEMA played side-by-side comparisons of Suno's output and famous tracks, arguing the AI reproduced recognisable melodies, harmonies, and rhythms. Among the songs cited were "Forever Young," "Mambo No. 5," and "Daddy Cool."

Suno must disclose the revenue it earned from the infringement so damages can be calculated. The court has not yet set a figure.

Under German law, a first-instance judgment can be enforced even while an appeal is pending. That means GEMA could pursue injunctions against Suno's European operations without waiting years.

The stakes are large for Suno. The Massachusetts startup was valued at around $5.4bn in a funding round earlier this year — built on the kind of model the court has now found unlawful in Germany. It fought hard, filing fresh arguments before the verdict and even trying to remove the presiding judge.

Rival Udio faces its own suits, and Sony has sued it a second time over 30,000 songs, seeking billions. Both Suno and Udio have struck settlements with Warner Music, and Udio has reached terms with Universal — signs that licensing may shape the endgame.

Munich is becoming a centre of gravity for AI-copyright law; the same court ruled last year that OpenAI's ChatGPT infringed by reproducing German lyrics. Europe now has a precedent. What Suno does next — appeal, settle, or restrict its European service — will tell other AI firms how costly it is to build first and license later.