Of course the models are not human, but if you consider this situation as if they are persons, then the question becomes: May a person read lyrics and tell it to someone when asked, and the court's ruling basically says no, this may not happen, which makes little sense.

I guess the main difference between the situation with language models and humans is one of scale.

I think the question should be viewed like this, if I as a corporation do the same thing but just with humans, would it be legal or not. Given a hypothetical of hiring a bunch of people, having them read a bunch of lyrics, and then having them answer questions about lyrics. If no law prohibits the hypothetical with people, then I don't see why it should be prohibited with language models, and if it is prohibited with people, then there should be no specific AI ruling needed.

All this being said, Europe is rapidly becoming even more irrelevant than it was, living of the largess of the US and China, it's like some uncontacted tribe ruling that satellites can't take areal photos of them. It's all good and well, just irrelevant. I guess Germany can always go the route of North Korea if they want.