Sam Altman Hints at Sora Copyright Risks, OpenAI Revises AI Video Policy

OpenAI has launched its AI-powered short-form video app, Sora, sparking immediate excitement and growing legal concerns over copyright infringement. Available exclusively on iOS and invite-only, Sora allows users to generate AI videos from text prompts, quickly climbing to the top of Apple’s App Store. However, the app has already been flooded with user-generated clips featuring copyrighted characters and brands, including SpongeBob SquarePants, Pokémon, Rick and Morty, South Park, and McDonald’s Ronald McDonald. Videos depict these characters in imaginative, sometimes surreal scenarios—such as Sam Altman interacting with Pokémon or Ronald McDonald fleeing police in a burger-shaped car—raising red flags among legal experts. Mark Lemley, a Stanford Law School professor, warned that these videos likely violate copyright law, as characters and logos are protected intellectual property. “A lot of the videos that people are going to generate of these cartoon characters are going to infringe copyright,” he said. “OpenAI is opening itself up to quite a lot of copyright lawsuits by doing this.” While OpenAI claims it respects copyright, its current approach relies on a system where rights holders must actively request to be excluded—known as an “opt-out” model. This means that unless a studio or creator explicitly tells OpenAI not to use their content, it can be included in AI-generated videos. Legal experts like Jason Bloom of Haynes Boone argue this model is legally dubious, as copyright law generally requires explicit permission, not passive notification. In response to mounting criticism, OpenAI CEO Sam Altman announced changes in a blog post. He said the company will offer rights holders more granular control—similar to the opt-in system for likeness use—allowing them to specify how their characters can be used, including blocking them entirely. Altman also acknowledged the need to monetize video generation and hinted at sharing revenue with rights holders who allow their content to be used. OpenAI has reportedly offered studios and talent agencies the chance to opt out ahead of launch, but this approach has drawn criticism. Business Insider’s Peter Kafka called it a “laborious” and legally questionable attempt to rewrite copyright norms, arguing that it places the burden on creators to protect their work rather than requiring permission upfront. The controversy is part of a broader legal battle between AI companies and content creators. OpenAI already faces lawsuits from The New York Times, George R.R. Martin, John Grisham, and others over unauthorized use of copyrighted material. Media giants like Disney and Universal have sued Midjourney for using their intellectual property to train AI models, and Disney recently sent a cease-and-desist to Character.AI over unauthorized use of its characters. Meanwhile, OpenAI has faced backlash before—such as when a voice model mimicked Scarlett Johansson’s voice, prompting her to speak out. The company also stirred debate over its “Ghibli-style” image feature, which used the aesthetic of Studio Ghibli without explicit consent from Hayao Miyazaki. While Sora represents a major leap in AI creativity, its rapid adoption underscores the urgent need for clear legal frameworks around AI-generated content. As Altman noted, the goal is to create a system where rights holders can choose how their work is used—and potentially benefit from it. But until then, the legal risks remain high, and the industry stands at a crossroads between innovation and accountability.