Earlier this month, OpenAI launched Sora 2, a text-to-video generating app designed to churn out AI-generated videos.<\/p>\n
The app has become ground zero of copyright-infringing clips, from SpongeBob SquarePants taking a bong rip and sipping codeine<\/a> to Scooby-Doo getting caught speeding on a highway<\/a>.<\/p>\n OpenAI responded with some sloppily-implemented guardrails, which were initially met with exasperation<\/a> \u2014 until, that is, mischief-makers realized they could easily be circumvented<\/a>.<\/p>\n All that blatant disregard for copyright has seemingly put Hollywood agencies and studios on the back foot. Major talent agencies told the Hollywood Reporter<\/a> that OpenAI had been \u201cpurposely misleading\u201d them in behind-the-scenes communications.<\/p>\n According to THR\u2018s reporting, the company told some rightsholders that they\u2019d have to opt out of having their work appearing<\/a> on the app, while telling others the opposite.<\/p>\n In an October 3 blog post<\/a>, CEO Sam Altman promised to \u201cgive rightsholders more granular control over generation of characters, similar to the opt-in model for likeness but with additional controls.\u201d<\/p>\n But the damage was already done. Sora soared to the top of the App Store, a chart-topping launch facilitated by the promise of unfettered access to some of the most recognizable characters in media today.<\/p>\n Its initial messaging that talent agencies would have to individually notify OpenAI that their clients didn\u2019t agree to have their likeness appear in the app was met with incredulity.<\/p>\n \u201cIt\u2019s very likely that client would fire their agent,\u201d a partner at WME, which represents actors such as Matthew McConaughey and Michael B Jordan, told THR. \u201cNone of us would make that call.\u201d<\/p>\n The rampant reproduction of copyrighted material on Sora drew plenty of attention from Hollywood lobbying groups, with the Motion Picture Association blasting the company<\/a> and calling for \u201cimmediate action.\u201d LA-based talent and sports agency Creative Artists Agency also joined the chorus, calling<\/a> Sora a \u201cmisuse\u201d of emerging tech and \u201cexploitation, not innovation.\u201d<\/p>\n Many see OpenAI\u2019s ask-for-forgiveness-later approach to copyright as a bait-and-switch.<\/p>\n \u201cThis was a very calculated set of moves he made,\u201d an unnamed agency exec familiar with the chaos unfolding behind the scenes, told the Reporter. \u201cThey knew exactly what they were doing when they released this without protections and guardrails.\u201d<\/p>\n Other experts pointed out OpenAI\u2019s loose and misinformed interpretation of copyright law.<\/p>\n \u201cThey\u2019re turning copyright on its head,\u201d legal advisory firm Moses Singer partner Rob Rosenberg told THR. \u201cThey\u2019re setting up this false bargain where they can do this unless you opt out. And if you didn\u2019t, it\u2019s your fault.\u201d<\/p>\n According to the publication, talks \u201cinvolving legal personnel\u201d are ongoing and \u201clitigation is being considered.\u201d<\/p>\n Major Hollywood studios have already kicked off major legal action against AI image generator Midjourney<\/a> for copyright infringement. AI company Anthropic also\u00a0agreed to a blockbuster $1.5 billion settlement<\/a>\u00a0earlier this year after being caught red-handed training its models on pirated copies of copyrighted books.<\/p>\n The ongoing litigation hints at the possibility that OpenAI could soon transition from being an ally to an adversary in the eyes of rightsholders. <\/p>\n That could undermine the AI industry\u2019s ability to sign partnerships with studios, further driving a wedge between companies like OpenAI and Hollywood.<\/p>\n \u201cHow are you coming to the industry expecting partnership?\u201d the WME partner recalled telling OpenAI staff, per THR. \u201cYou quite literally set the bridge on fire.\u201d<\/p>\n