Disney and OpenAI have recently agreed a licensing agreement that allows OpenAI’s AI video-generating model, Sora, to generate clips of Disney characters from user inputted prompts. Selected AI-generated videos will then be available to stream on Disney+, and Disney will be able to use OpenAI’s Application Programming Interfaces (APIs) for product development. OpenAI has stated that the agreement brings “these leaders in creativity and innovation together to unlock new possibilities in imaginative storytelling”.
As part of the agreement, Disney will also invest $1 billion into OpenAI, meaning that Disney will receive substantial dividends as a result of increased confidence and rapid growth in the technology and AI sector. However, OpenAI will not have access to the rights for talent likeness or voices, which may restrict the scope of the content that individuals can generate. Alternatively, there could be scope for tension in the creative industry where AI-generated videos of characters inadvertently include the likenesses of the actors who portray them without their consent.
With the agreement still to be finalised, it will be interesting to see how Disney and OpenAI balance their commitment to ethical AI use and promoting fan-based creative inputs whilst also protecting the individual rights of Disney’s vast array of talent, as well as Disney’s own extensive IP portfolio.
If you have any questions on the above, or if you need any advice or support in respect of your own intellectual property, please do not hesitate to contact the team at McDaniels Law on 0191 281 4000 or legal@mcdanielslaw.com.

