Copyright and
Collecting Societies
Copyright law protects the very core of human creativeness, intellectual creations – ranging from software and literary works to visual and audiovisual works, music and fine art. It provides the legal framework for the exploitation, transferability and effective enforcement of copyrights. This includes, for example, exploitation rights, statutory remuneration claims and moral rights. Infringements of copyright, such as plagiarism, pirated copies or the unauthorized use of pictures and texts, may give rise to claims for injunctive relief and damages or even be punished by law.
As a key pillar of the media and entertainment industry, copyright law is nowadays gaining importance in almost every sector of the economy – particularly where protected content is used for marketing purposes or as part of digital products. The scope of copyright issues is complex. In addition, there are ongoing amendments in law, to keep up with progressive digitalisation and the increasing use of AI.
In particular, the use of generative AI—from large language models (LLMs) to video and image generators—presents companies with a multitude of legal questions, some of which remain unresolved. At the center of the debate is the question of to what extent copyright-protected works may be used as training data without an explicit license. While in the EU, the exceptions for text and data mining (TDM) under Directive (EU) 2019/790 on copyright and related rights in the Digital Single Market (DSM Directive) provide the legal framework, the interpretation of the fair use doctrine remains a subject of debate in the U.S.
The protection of AI output also remains uncertain for companies: Since German and EU copyright law requires the “author’s own intellectual creation” by a human being, results solely generated by machines generally lack the necessary level of originality. So far, the focus has been only on supplementary protection mechanisms such as ancillary copyright (e.g., for film or database producers) or the Geschäftsgeheimnisgesetz (GeschGehG).
Globally, these uncertainties are leading to legal disputes—such as lawsuits filed by major publishers and artists against tech giants. Added to this are divergent regulatory approaches: With the AI Act (EU) 2024/1689, the EU is adopting a risk-based approach with strict transparency requirements for training data, while the U.S. and Asian markets have so far relied more heavily on market-driven innovation. For companies operating globally, this creates a complex tension between compliance obligations and competitive pressure, which requires a precise legal strategy.
Beyond mere protection issues, complex compensation models are coming into focus in business practice. This applies to fair compensation and the resulting claims for retroactive copyright royalties, which can trigger subsequent claims in the event of unexpectedly high usage success. At the same time, the licensing of digital content and the individual clarification of rights in complex adaptations, such as the use of music in advertising campaigns, require precise contractual arrangements to avoid costly claims for injunctive relief and damages.
In the context of mass online usage, the Urheberrechts-Dienstanbieter-Gesetz (UrhDAG) and the associated liability issues and licensing obligations pose major operating challenges for companies. In this context, collective rights management by collecting societies (such as GEMA, VG Wort, or Bild-Kunst) is becoming increasingly more important. The rates established under the Verwertungsgesellschaftengesetz (VGG) for the online sector, as well as the remuneration models currently being developed for the training and use of AI models and systems, are developing into a decisive economic factor. We support you in analyzing these rate structures, ensuring that licensing chains are fully closed, and effectively representing your economic interests towards collecting societies.
Digitalization requires a continuous balance between authors, rights holders, and platform operators. European lawmakers have recognized this need for reform through the DSM Directive and Directive (EU) 2019/789 on the exercise of copyright and related rights applicable to certain online transmissions of broadcasting organizations and retransmissions of television and radio programs and have set a new course for the Digital Single Market. In Germany, these requirements were implemented in 2021 through the Gesetz zur Anpassung des Urheberrechts to the requirements of the Digital Single Market:
This comprehensive reform brought significant changes to the Urhebergesetz (UrhG) and the Verwertungsgesellschaftengesetz (VGG). Key points include the modernization of press publishers’ ancillary copyright, of copyright contract law in favor of creative artists, and the revision of publishers’ share of revenue. In addition, statutory licenses for text and data mining were established—an essential foundation for machine learning and AI. While the UrhG now explicitly grants exceptions for uses for the purposes of caricature, parody, and pastiche, it simultaneously revises the regulations governing retransmission via Over-the-Top Services (OTT) and the direct feed of programs.
The AI Act, on the other hand, has largely left out pressing and contentious copyright issues and has merely established certain transparency and documentation requirements for the handling of training data in AI models.
The European Commission has announced a reassessment of the provisions of the DSM Directive, such as those regarding platform liability or fair remuneration for authors in the context of generative AI, and any necessary adjustments. An evaluation of the VGG is also taking place at the national level, in which remuneration rules for generative AI are to be discussed.
The Urheberrechts-Diensteanbieter-Gesetz (UrhDaG), Act on the Copyright Liability of Online Content Sharing Service Providers, fundamentally redefines the responsibility of upload platforms: Service providers now perform a copyright-relevant act of communication to the public. As a result, they are generally liable for content uploaded by users—a significant departure from the previous liability exemptions under Directive 2000/31/EC on electronic commerce (eCommerce Directive). The platform service providers can avoid this extensive liability under UrhDaG by complying with specifically regulated duties of care. These include, on the one hand, the obligation to acquire licenses for the public communication of copyrighted works and, on the other hand – for unlicensed works – an automated and an individual blocking procedure (filter technologies).
We support you in the optimal exploitation and monetization of your digital content and advise you on all aspects of production, purchase or distribution.
Our range of copyright advice covers the protection, use and exploitation of copyrights and neighboring rights in music, film, software/games, press products, (electronic) books, applied art, artistic performances, etc. Our advice is comprehensive and covers, for example, the distribution of television programs, the use of databases or the electronic lending of eBooks. We draft and negotiate a wide variety of license agreements, prepare legal opinions and represent you in and out of court (including preliminary proceedings). This applies equally to you as a user, author or owner of related rights.
The key focus of our practice is providing advice at the intersection with AI. We guide you through the development and implementation of generative AI systems and address critical issues regarding the lawful use of training data, as well as the legal protection and liability for AI output. Beyond mere risk analysis, we assist you in establishing the necessary corporate structures, adapt your contractual framework, and conduct specific in-house training sessions on the legally compliant use of generative AI.
In dealings with collecting societies, we represent your interests vigorously. We review rates for reasonableness, conduct proceedings before the arbitration board at the German Patent and Trademark Office (DPMA), or before the regular courts in subsequent litigation. In this context, establishing fair rate models for AI applications is becoming increasingly important for our clients.
In addition, we inform you about all European and national legislative procedures relevant to your company in the area of copyright law and support you in placing your interests in Berlin and Brussels.
Our client base reflects the breadth of the modern content and technology industry: We advise traditional media companies—from broadcasters and film production companies to rights traders—as well as infrastructure and platform operators, online service providers, cable network operators, and content aggregators. Advertising agencies, companies in the device industry, as well as authors and artists, also rely on our expertise to protect and monetize their rights. Large and medium-sized companies that, while not traditionally part of the media sector, require copyright advice due to their digital offerings and marketing activities—such as viral marketing, social media, sponsorship, and major campaigns—also rely on our expertise.
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