This newsletter compiles global intellectual property news from various media sources.
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OpenAI Sued by GEMA in Germany Over Copyright Infringement
German copyright society GEMA has filed a lawsuit against OpenAI, alleging that ChatGPT uses German authors' song lyrics without proper licensing or payment. Filed in the Munich Regional Court, the lawsuit claims that OpenAI has trained its AI systems using protected works from GEMA’s members without fair compensation. Notable German artists, including Kristina Bach, Reinhard Mey, and Inga Humpe, are said to have their song lyrics exploited without permission. GEMA also asserts that ChatGPT reproduces these lyrics through simple prompts, violating copyright laws intentionally.
With this lawsuit, GEMA aims to push AI companies to adopt fair licensing practices. GEMA’s CEO, Dr. Tobias Holzmüller, stated that creative works should not be used as free resources, while Supervisory Board Chairman Dr. Ralf Weigand emphasized that the case sends a critical message against the commercial exploitation of human creativity. The lawsuit seeks to address fundamental legal questions surrounding AI technologies and aims to establish a fair licensing model that balances the interests of creators and commercial users.
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ParTec Files Patent Infringement Lawsuit Against Nvidia in Europe
German supercomputing company ParTec has filed a patent infringement lawsuit against Nvidia, seeking an injunction to halt the sale of its GPUs in 18 countries. The case revolves around ParTec's dynamic modular system architecture (dMSA) technology, with the same patents cited in a lawsuit against Microsoft in the U.S. ParTec claims that Nvidia rejected collaboration talks and argues that these patent infringements pose a threat to Europe’s computing industry.
The company alleges it introduced its technology to Nvidia during discussions in 2019, offering a partnership to develop supercomputers. However, Nvidia reportedly declined further talks, citing its ties with Microsoft. ParTec emphasizes the need for Europe to build its own sovereign supercomputing infrastructure, warning that the current reliance on Nvidia and Microsoft technologies jeopardizes Europe’s technological independence.
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Slogans will be protected as trademarks in BrazilIn October, the Brazilian Patent and Trademark Office (BPTO) announced a new interpretation regarding the registrability of advertising elements. This new approach paves the way for the legal protection of slogans and advertising expressions as trademarks in Brazil. Previously, under the Brazilian Industrial Property Law (BIPL), expressions used for advertising purposes were strictly prohibited from registration. However, the new interpretation allows trademarks consisting of both distinctive elements and advertising elements to be registered, provided they are distinct enough.
The new approach, influenced by the Paris Convention, allows marks that simultaneously serve an advertising function and have distinctiveness to be registered. However, expressions that are commonly used in the market or lack originality are still not eligible for registration. The BPTO also proposed an update to the Trademark Manual, defining an "advertising function" as one that recommends, promotes, or differentiates products/services or persuades action. With this update, Brazil will no longer be among the few countries that do not allow the registration of slogans, joining most of the world.
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Sony Music Entertainment Settles Copyright Lawsuit Over Whitney Houston Biopic
Sony Music Entertainment (SME) has resolved a copyright lawsuit against the producers of the 2022 Whitney Houston biopic I Wanna Dance With Somebody. SME alleged that Anthem Films, NYBO Productions, Black Label Media, and WH Movie failed to pay licensing fees for 24 Whitney Houston tracks featured in the film, including hits like I Will Always Love You and How Will I Know. The lawsuit was filed in February, accusing the filmmakers of unauthorized use despite signing a sync licensing agreement with Sony just before the film’s release.
The case was settled after Sony initially demanded $150,000 per violation, potentially amounting to $3.6 million in damages. Issues arose when Anthem failed to pay the fees, citing delays in receiving a Massachusetts tax credit, and Black Label Media, an investor, declined to authorize payment. The terms of the settlement remain undisclosed, but Sony dismissed the suit with prejudice, barring it from being refiled. The biopic grossed $60 million worldwide, highlighting Whitney Houston’s enduring legacy as a music icon.
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EU Court Rules in Favor of Game Modding in Sony vs. Datel Case
The European Court of Justice (ECJ) ruled that third-party add-ons like those sold by UK-based Datel for PlayStation games do not violate EU copyright law. Datel’s software, which allowed infinite boosts in the racing game MotorStorm, was found to modify variables in working memory without altering the game’s source code. The court clarified that EU copyright law protects the intellectual creation as reflected in the program's source and object code but does not prohibit third-party software that temporarily changes in-game variables.
This ruling is seen as a pivotal moment for the gaming modding ecosystem, which drives significant innovation and generates hundreds of millions of dollars. Critics, including gaming activist Ross Scott, argue that Sony's attempt to restrict game modifications is overreach, likening modding to personalizing a book or a car. Scott also highlights the broader implications for the gaming industry, warning that stricter copyright interpretations could stifle creativity and jeopardize modding-driven successes like Fortnite.
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