GEMA has unveiled detailed plans for its generative AI licensing framework, proposing a two-component model that demands significant revenue sharing from AI developers.

The first component requires all generative AI platforms operating in Germany to share 30% of their net income with rightsholders if they used protected musical works during training. This applies regardless of when or where the training occurred, and includes a minimum royalty requirement.

The second component focuses on ongoing payments for AI-generated music usage. GEMA demands compensation for all economic benefits from AI-generated music, including usage in public venues and streaming services. These payments must match or exceed the rates for human-created works.

This framework represents the first comprehensive attempt to balance technological advancement with creative rights protection. While implementation faces challenges, particularly given OpenAI's threats to leave the EU over regulations, GEMA's proposal gains support from the EU's AI Act and Germany's strict regulatory environment.

The initiative emerges amid ongoing copyright litigation against AI companies including Anthropic, Suno, Perplexity, and Udio, marking a crucial development in the regulation of AI-generated content.

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