Character.AI Removes Disney Characters After Cease-and-Desist from Disney Over Copyright and Safety Concerns

Character.AI has removed Disney characters from its platform following a cease-and-desist letter from the entertainment giant. According to Variety, Disney’s legal team sent the notice, accusing the chatbot company of infringing on its intellectual property rights and exploiting the popularity of its iconic brands. The AI platform allows users to create and interact with virtual characters based on real people, fictional figures, and original ideas. Among the most popular personas were characters from Disney’s vast universe, including Mickey Mouse, Donald Duck, Captain America, and Luke Skywalker. However, after the legal warning, searches for these characters now return no results. Disney’s lawyers argued that Character.AI was profiting from the goodwill and recognition associated with its trademarks without authorization. “Character.ai is freeriding off the goodwill of Disney’s famous marks and brands, and blatantly infringing Disney’s copyrights,” the letter stated. It also raised concerns about the potential for harm, noting that some AI chatbots have been linked to inappropriate or dangerous behavior, including sexual exploitation and harmful content targeting minors. The letter emphasized that such content not only violates Disney’s rights but also damages its reputation and harms its audience, particularly children. While Disney characters have been removed, some characters from media under Disney’s ownership—such as Percy Jackson and Hannah Montana—still appear in search results, suggesting that the takedown may not be fully comprehensive. The move highlights the growing legal and ethical challenges facing AI platforms as they grapple with intellectual property rights, content safety, and the use of copyrighted personas in generative AI. Character.AI has not yet issued a public statement on the matter, but the removal of major Disney figures signals a significant shift in its content policies.