German court rules AI music firm Suno broke copyright rules

MUNICH, July 31 (Reuters) - ‌A German court ​ruled ​on Friday that AI music firm Suno violated copyrights and has to disclose illicit ‌revenue, part of a wider legal battle by artists ⁠and publishers against technology firms.

The Munich-based regional court said Suno ‌did not have the right ‌to process songs by artists represented by Germany's state-mandated licensing agency Gema.

According to the verdict, which can ​be appealed before a higher court, Suno will have to pay damages that have yet to ⁠be quantified.

"This is a verdict of global significance," Gema CEO Tobias Holzmueller told ​Reuters.

Suno said that it disagreed with the ruling and would evaluate all available options, including ​an appeal.

Gema sued against Suno's ‌use of free music on Alphabet's YouTube from a number of artists including Alphaville, ⁠the band behind 1980s hits "Forever Young" and "Big in Japan".

The German government's culture representative, Wolfram Weimer, called the verdict an important ⁠signal to support creators' rights in the digital music industry.

"We need ​a regulatory framework that strengthens innovation and creativity," he said in a statement.

Massachusetts-based Suno, valued at $5.4 billion in a June funding ‌round, allows users to generate songs via prompts.

In various litigation proceedings, AI music companies ‌have been accused of failing to compensate composers.

More than ⁠1,800 artists are supporting ‌class-action lawsuits against Suno ​and peer Udio.

(Reporting by Joern Poltz in Munich, writing by Ludwig Burger, Editing by Miranda ‌Murray)

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