Hollywood-AI battle heats up, as OpenAI and studios clash over copyrights and consent

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One year after OpenAI’s Sora AI video tool caused a stir in Hollywood, CEO Sam Altman announced a new update that could be a major development.

Sora has been updated so users can now do more than just create images from scratch. They can upload videos of real people and seamlessly place them into entirely AI-created scenes, adding realistic sound and even making the people in the video appear to speak within that new environment.

One video shows a digitally created Michael Jackson taking a selfie with a picture of Bryan Cranston from “Breaking Bad”. Another features SpongeBob SquarePants seemingly speaking from behind the President’s desk in the Oval Office.

On September 30th, Sam Altman announced the release of Sora 2 on X, stating that video models have significantly improved and calling it a major research breakthrough.

However, Hollywood hasn’t reacted positively to these new AI tools, and there’s been a strong negative response. The main issue is who owns the rights to actors’ images and the appearance of licensed characters, and how fairly they should be paid when these are used to train AI systems.

The Motion Picture Assn. trade group didn’t mince words.

In a statement released Monday, OpenAI Chairman Charles Rivkin urged the company to quickly and firmly resolve the current problem, emphasizing that existing copyright laws protect creators and are relevant in this situation.

It was amazing to see how quickly everyone in Hollywood – from different agencies to the actors’ union, SAG-AFTRA – started saying the same thing this week. It felt like a really unified front, and it definitely put OpenAI in a tough spot, forcing them to respond.

Hollywood Inc.

A Dutch artist who made a digital actor named Tilly Norwood caused controversy in Hollywood by announcing she was about to be represented by a talent agency.

OpenAI is actively talking with film studios and copyright owners, taking their comments to heart, and studying how people are using Sora 2. According to Varun Shetty, OpenAI’s head of media partnerships, many users are making new videos and enjoying interactions with well-known characters. OpenAI believes this presents a chance for copyright holders to engage with their audience and foster creative collaboration.

The recent legal dispute between OpenAI and Hollywood’s studios and agencies is likely just the first stage of a lengthy and difficult battle. This fight could significantly influence how artificial intelligence is used in the entertainment industry going forward.

According to Anthony Glukhov, a lawyer at Ramo, the real question isn’t *if* Hollywood studios will push back against Silicon Valley over AI, but *when* and *how* they’ll do it. He believes studios may try to appear strong, but ultimately a major conflict between the two industries is inevitable.

Before sparking controversy among artists, OpenAI was secretly attempting to establish a presence in the movie and television industry.

Last year, the folks at the company really started making the rounds in Hollywood. I heard they were reaching out to big players like Disney, trying to get people excited about working with their tech and, honestly, calming some nerves about what it all meant. It felt like a big push to show everyone they were serious about collaborating.

This year, the San Francisco-based AI startup took a more assertive approach.

OpenAI spoke with several studios and agencies before launching Sora 2 to the public. They informed these groups that anyone wanting to prevent their intellectual property – like characters they own the rights to – from being recreated by the AI needed to specifically request it. According to two sources with knowledge of these discussions, actors would automatically be included in Sora 2 unless they actively chose to opt out.

OpenAI disagrees with the assertion and states that they’ve always aimed to let actors and public figures decide how their image and identity are used.

The response was immediate.

WME, a major talent agency representing stars like Michael B. Jordan and Oprah Winfrey, protested OpenAI’s actions and announced that all of its clients will no longer participate.

Both Creative Artists Agency and United Talent Agency stated that their clients should have the power to decide how their image is used and receive payment when it is.

Studios, including Warner Bros., echoed the point.

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Disney, Universal, and Warner Bros. Discovery are suing a Chinese AI company, MiniMax, for violating copyright laws. This is the second such lawsuit from major movie studios as they deal with the increasing use of artificial intelligence tools.

Warner Bros. Discovery stated that current copyright laws already protect content creators without requiring them to take extra steps to prevent unauthorized use of their work. The company emphasized that even with new technologies and platforms, these fundamental copyright principles remain the same.

Unions like SAG-AFTRA were already worried about AI, especially after a realistic, AI-created performer named Tilly Norwood appeared. This new development caused even more concern.

SAG-AFTRA, the actors’ union, criticized OpenAI’s approach to copyright, where creators must actively request their work not be used. Union President Sean Astin and Executive Director Duncan Crabtree-Ireland stated this practice jeopardizes the livelihoods of people working in the entertainment industry and highlights the importance of the ongoing legal battle.

This disagreement highlights a fundamental difference in how two worlds operate. Silicon Valley favors a quick, innovative approach – it’s better to launch something and fix problems later than to wait for approval. Hollywood, however, is traditionally cautious about new technology and determined to protect its valuable creative content.

According to Rob Rosenberg, a lawyer specializing in entertainment law, the main challenge is figuring out how new technologies work with existing copyrights. He explained that this issue was causing significant disruption and frustration throughout the entertainment industry.

Following public concern, Sam Altman announced on his blog shortly after the release of Sora 2 that OpenAI will offer more detailed control options for copyright owners and is developing a system to pay them for videos created using the technology.

OpenAI has systems in place to prevent the creation of content featuring famous characters. They also have a team reviewing and removing anything that violates their rules, and copyright owners can request content be taken down if needed.

Legal experts suggest the strong criticism from artists and creators might be a way to pressure OpenAI into paying for the rights to use their work.

Hollywood Inc.

I’ve noticed Google is investing in short films, and I’m really excited about the direction they’re taking. Instead of focusing on scary ‘AI taking over the world’ ideas, these films are exploring all the *good* things AI could actually do. It’s a refreshing change of pace!

According to Ray Seilie, an entertainment lawyer at Kinsella Holley Iser Kump Steinsapir, current law gives copyright owners complete authority over how their work is used.

He explained that it wasn’t his place to tell others to stop using something, and that they were responsible for any consequences if they did.

Disney, Universal, and Warner Bros. Discovery have all filed lawsuits against AI companies MiniMax and Midjourney, claiming they’ve violated copyright laws.

A key issue is determining how to fairly pay artists and those who own the rights to creative work. Many people in the entertainment industry agree that a simple, one-size-fits-all payment isn’t the right solution.

Dan Neely, CEO of Vermillio, a Chicago company specializing in AI protection for Hollywood talent and studios, emphasized the need for flexible monetization strategies. He believes tailored approaches, rather than a single solution, are key to benefiting both talent and studios.

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2025-10-11 13:32