OpenAI has abruptly shifted its copyright policy for Sora, its new AI-powered video-generation application, following a rapid backlash from content creators and Hollywood studios concerned about unauthorized use of their intellectual property. Initially launched with an opt-out model—requiring rights holders to actively exclude their content from the AI tool—Sora quickly flooded the internet with unauthorized videos featuring iconic characters like SpongeBob SquarePants and Pikachu, prompting widespread legal and ethical concerns.
In a statement on October 3, 2025, OpenAI CEO Sam Altman announced the company would implement a “granular” opt-in system allowing copyright owners to explicitly specify if, and how, their characters and content could be used in Sora-generated videos. This new approach marks a significant policy reversal, aiming to better respect creative ownership while enabling new forms of interactive fan engagement.
Altman explained that many rights holders were enthusiastic about this new kind of “interactive fan fiction” but wanted the ability to control or block the use of their properties. OpenAI is also exploring revenue-sharing models that could compensate content owners when their intellectual property is used, reflecting precedents set by streaming platforms like Spotify. Although details on monetization remain tentative, the company views it as a critical step to support content creators in the AI era.
This policy change comes amid increasing legal pressure on AI companies over unauthorized use of protected works in training their models. OpenAI has faced multiple lawsuits alleging copyright infringement, and Sora’s launch exposed an acute example of these challenges in the audiovisual space.
Several Hollywood studios, including Disney, have actively engaged with OpenAI through the process, with some studios reportedly opting out of Sora’s content altogether. OpenAI has also introduced takedown mechanisms and user controls to address misuse and protect likeness rights.
Despite controversy, Sora quickly gained popularity, reaching the top of the Apple App Store charts within days. The swift backlash highlighted the complex intersection of AI innovation, intellectual property rights, and content monetization in a rapidly evolving digital landscape.
With the rollout of these new controls, OpenAI aims to strike a balance between fostering creativity and respecting creators’ rights, potentially establishing new industry standards for AI-generated content management.
This article is informed by multiple recent reports from WebProNews, TechCrunch, Business Insider, CNBC, Reuters, The Hollywood Reporter, and others, reflecting the evolving discourse around AI, copyright, and the Sora app.webpronews+7
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