Munich Court Rules AI Firm Suno Violated Copyright Laws

A regional court in Munich ruled on July 31, 2026, that Suno Inc. violated German and U.S. copyright laws by training its AI models on unlicensed music represented by GEMA, Germany's state-mandated licensing agency. Judge Elke Schwager found that Suno's process constituted memorization rather than permissible analysis, allowing the AI to reproduce works—including songs by Alphaville and Boney M.—almost note-for-note. The court rejected Suno's defenses regarding U.S. fair use and EU text-and-data-mining exceptions, ruling that the latter does not protect companies that reproduce copyrighted works in their output.

In a significant jurisdictional precedent, the court determined that German law applies to training conducted in the United States because the resulting models store data and serve outputs to users in Germany. Suno must now cease reproducing six specific works at the center of the case, disclose illicit revenues, and pay damages, though the exact amount has not yet been quantified.

GEMA CEO Tobias Holzmüller stated the verdict clarifies that AI models built on intellectual property theft lack legal protection and strengthens Europe's position as a cultural hub. Suno disagreed with the ruling, claiming it rests on a mischaracterization of its technology and U.S. law. The company, which reports approximately $300 million in annual recurring revenue from 2 million paid subscribers, is currently evaluating an appeal.