A German court ruled on Friday that AI music firm Suno violated copyrights and must disclose illicit revenue, in a case brought by Germany’s state-mandated licensing agency Gema. The Munich-based regional court said Suno did not have the right to process songs by artists represented by Gema. Suno will have to pay damages that have yet to be quantified, and the verdict can be appealed before a higher court. Gema CEO Tobias Holzmueller called it “a verdict of global significance.” Suno said it disagreed with the ruling and would evaluate all available options, including an appeal. Gema sued over Suno’s use of free music on Alphabet’s YouTube from artists including Alphaville, the band behind 1980s hits “Forever Young” and “Big in Japan.” German government culture representative Wolfram Weimer called the verdict an important signal to support creators’ rights, adding, “We need a regulatory framework that strengthens innovation and creativity.” Massachusetts-based Suno, valued at $5.4 billion in a June funding round, allows users to generate songs via prompts. More than 1,800 artists are supporting class-action lawsuits against Suno and peer Udio.