The Italian [state] had demanded a licensing agreement for the commercial use of one of the Renaissance master’s most famous drawings, despite the fact that he died more than 500 years ago, placing his works in the public domain under international copyright law.
The [Italian] plaintiffs argued that a domestic law aimed at protecting Italy’s cultural heritage meant they had the authority to demand agreements with those who profit from culturally significant artworks, even if they are based abroad.
This may not be over. The Italian state can attempt to get its way on the EU level via new laws. It wouldn’t surprise me if that succeeded.
I’m puzzled why they even thought it would be possible to enforce their Italian laws outside of Italy.