Indie Artists Sue Google, GEMA Takes on Suno, and Apple Music Introduces AI Transparency Tags

How The Music Business Works - Issue #52

This week, AI and copyright take center stage as independent musicians sue Google over alleged large-scale theft of copyrighted music, and GEMA faces off against Suno in a landmark German court hearing that could set a precedent for how AI music tools operate in Europe.

Meanwhile, Apple Music moves toward greater transparency with the introduction of AI disclosure tags, PRS takes Steam to court over a licensing gap that has gone unaddressed since 2003, and Spain's recorded music market posts strong growth figures driven by streaming subscriptions and a surge in vinyl sales.

Here's what's happening.

Indie Artist Coalition Files Major Lawsuit Against Google Over AI Copyright Theft

A coalition of independent US musicians has filed a lawsuit against Google, alleging the tech giant systematically copied millions of copyrighted songs without licensing them to train its AI music tools, stripped the works of their copyright management information in violation of the Digital Millennium Copyright Act, and distributed the AI-generated results through YouTube to hundreds of millions of users. Plaintiffs' attorney Ross Kimbarovsky noted that Google routinely licenses music for commercials and films, yet chose not to do so when copying millions of songs to build a commercial AI music generator. A federal jury is being asked to rule on 16 alleged violations, including copyright infringement, fraud, illegal distribution, false endorsement, and false advertising.

Apple Music to Inform Listeners if Music on Platform is AI-Generated

Apple Music has announced the introduction of "Transparency Tags," requiring music uploaders to declare AI usage as part of a track's metadata across four components: artwork, recording, composition, and music video. The "track tag" flags if AI has been used on a material portion of the recording, while the "composition tag" covers elements such as lyrics. However, the responsibility for identifying and reporting AI use falls entirely on labels and rights-holders rather than Apple itself. In a statement, Apple said that "proper tagging of content is the first step in giving the music industry the data and tools needed to develop thoughtful policies around AI," adding that labels and distributors must take an active role in reporting AI-generated content.

PRS Sues Gaming Platform Giant Steam for Copyright Infringement

UK collecting society PRS has filed a lawsuit against Valve Corporation, the operator of PC gaming platform Steam, over alleged copyright infringement dating back to the platform's launch in 2003. While game developers and publishers typically hold sync licenses covering the inclusion of music in their games, those licenses do not extend to the "making available" right that is triggered when a game is downloaded or streamed. Under the UK system, that right is exclusively controlled by PRS, not music publishers, meaning Steam has required a separate PRS license all along. PRS states it has sought to license Steam for many years without adequate engagement from Valve, and has indicated it will continue litigation unless Valve secures the necessary license both retrospectively and going forward.

8m Subs Fuelled 13.7% Growth for Spain’s Recorded-Music Industry in 2025

Spain's recorded music market grew 18.6% in 2025 to €674.5m at retail value, according to figures released by Spanish labels body Promusicae. This year's report placed particular emphasis on industry value, representing the revenues earned by rightsholders after DSPs and retailers took their cut, which reached €409.5m, up 13.7% year-on-year. Streaming subscriptions were the primary driver of growth, rising 19.2% to €213.8m, though ad-supported streaming moved in the opposite direction, declining 3.2% to €41.3m. Physical formats also performed strongly, with vinyl LP sales up 44.9% to €28.9m and CD sales rising 9.1% to €12.6m. On the consumer side, more than 21 million people in Spain used audio-streaming services in 2025, with over eight million on paid subscriptions, representing an 18% increase on the previous year.

GEMA vs. Suno: German Court Hears Landmark AI Music Copyright Case

Germany's collecting society GEMA held oral proceedings against AI music generator Suno on March 9, 2026. The case centers on allegations that Suno used copyrighted recordings to train its AI tool, with GEMA presenting evidence that AI-generated outputs closely matched original compositions in melody, harmony, and rhythm. GEMA CEO Dr. Tobias Holzmüller stated that "appropriate remuneration, transparency, and respect for authors are indispensable, even in the age of AI," while General Counsel Dr. Kai Welp stressed that copyright obligations should apply regardless of where AI systems are trained. The hearing adds another front to Suno's growing legal battles. In the US, the company continues to face copyright infringement lawsuits from Sony Music Entertainment and Universal Music Group, while a separate lawsuit from Denmark's Koda is also pending in Europe.