LATEST DEVELOPMENT
OpenAI CEO Sam Altman announced Sora will implement "granular" opt-in copyright controls and explore revenue-sharing with rightsholders after the AI video app topped App Store charts while flooding social media with copyrighted characters from SpongeBob to South Park, triggering swift Hollywood backlash and potential lawsuits just days after launch.
INDUSTRY TALK
"We are hearing from a lot of rightsholders who are very excited for this new kind of 'interactive fan fiction' and think this new kind of engagement will accrue a lot of value to them, but want the ability to specify how their characters can be used (including not at all)."
BY THE NUMBERS
Platform impact includes:
#1 ranking in iOS App Store Photo & Video category within 24 hours
10-second video length limit for user creations
72 hours to implement copyright filters after launch
Multiple major studios (including Disney) opting out pre-launch
Massive compute costs from users generating more videos than expected
POLICY REVERSAL
Strategic changes include:
Shift from "opt-out" to "opt-in" model for copyrighted characters
Granular controls allowing rightsholders to specify usage parameters
Revenue-sharing framework "starting very soon" with trial and error approach
Acknowledgment of "edge cases" that will slip through filters
Rapid blocking of terms like "South Park" within days of launch
COPYRIGHT CONCERNS
Legal implications include:
Stanford Law professor warning of "quite a lot of copyright lawsuits"
Disney and Universal already suing Midjourney over AI-generated characters
Disney cease-and-desist to Character.AI for unauthorized character use
Users easily generating videos of Mario, Pikachu, Rick and Morty
Question of whether Sora trained on copyrighted material without permission
MONETIZATION CHALLENGES
Economic factors include:
Users generating "significantly more video content than expected"
Content often created for "very small audiences" straining compute resources
Revenue-sharing model to offset massive compute costs
Comparison to YouTube's ad-monetization for copyrighted material
Uncertainty whether studios will accept payment for character manipulation rights
THE BOTTOM LINE
OpenAI's rapid copyright policy reversal within 72 hours of Sora's launch suggests the company may have been testing how far it could push copyright boundaries before enforcement—demonstrating that while AI video generation technology has advanced dramatically, the legal and economic frameworks for compensating rightsholders remain uncertain, with success depending on whether Hollywood embraces "interactive fan fiction" or pursues aggressive litigation.