OpenAI's Sora U-Turn: Why Sam Altman Ditched 'Opt-Out' Copyright for Hollywood's Money

Dive into the details of the evolving policies surrounding OpenAI’s new video app, Sora. Despite being an invite-only platform, Sora rapidly climbed to the top of the App Store charts. The app's distinctive features include "cameos," which allow users to upload their biometric data so their digital likeness can be featured in AI-generated videos.

However, the excitement around Sora has been matched by controversy, particularly concerning intellectual property. Users have demonstrated a delight in flouting copyright laws by creating videos that utilize popular, studio-owned characters. Examples include users generating content where characters like Pikachu and SpongeBob interact with deepfakes of OpenAI CEO Sam Altman, sometimes even criticizing the company's approach to copyright.

In response to these issues, OpenAI appears to be reversing its course on copyright. Previously, reports suggested OpenAI required Hollywood studios and agencies to explicitly opt out if they wished their IP to be excluded from Sora-generated videos. Now, CEO Sam Altman has announced two critical planned changes.

First, the company is implementing "more granular control over generation of characters". The key shift here is moving to an "opt-in" model. This suggests that users will be prevented from creating videos featuring copyrighted characters unless rightsholders have given Sora explicit permission to do so. Altman noted that many rightsholders are excited about the potential for this "interactive fan fiction" but require the ability to specify exactly how their characters can be used—including the option to block usage entirely. Despite this new approach, Altman acknowledged that there are likely to be "some edge cases of generations that get through that shouldn’t".

Second, the company is planning an unspecified form of video monetization. While the previous plan was only to charge users for creating extra videos during periods of high demand, Altman elaborated on this by suggesting that revenue generated could be shared with rightsholders. Ultimately, OpenAI hopes the new kind of engagement created through Sora is even more valuable than the revenue share, but the goal is for both the engagement and the revenue share to be valuable. Tune in as we discuss these sweeping changes affecting AI, media, and intellectual property.