Studio Ghibli, Square Enix, Bandai Namco and more Japanese companies demand OpenAI avoid unauthorized use of their IP: "There is no system allowing one to avoid liability"

The Japanese organization Content Overseas Distribution Association (CODA) – on behalf of member companies like Studio Ghibli and Square Enix creating anime and video games – has formally requested OpenAI avoid unauthorized use of its IP in the Sora 2 AI video generator.

In a written request CODA sent to OpenAI on October 27 and publicly announced on October 28 (noticed by Automaton), the organization says it "considers that the act of replication during the machine learning process may constitute copyright infringement."

Writing on behalf of 36 major Japanese companies, including entertainment behemoths like Aniplex, Toei, and Universal Music, CODA explains "that a large portion of content produced by Sora 2 closely resembles Japanese content or images" as "the result of using Japanese content as machine learning data."

Japan's copyright system requires those looking to use copyrighted material request it ahead of time, in contrast to Sora 2's current system that asks companies to opt-out certain characters' likeness sort of halfway through their usage. CODA warns OpenAI of this fact, noting that "there is no system allowing one to avoid liability for infringement through subsequent objections."

OpenAI CEO Sam Altman indirectly addresses this concern about Sora 2's unpopular opt-out policy in an October 3 blog, writing that Sora 2 will eventually "give rightsholders more granular control over generation of characters, similar to the opt-in model for likeness but with additional controls."

"In particular," he continues, "we'd like to acknowledge the remarkable creative output of Japan – we are struck by how deep the connection between users and Japanese content is!" Altman then claims, "We are going to try sharing some of this revenue with rightsholders who want their characters generated by users."

Not good enough, CODA suggests. The organization makes two formal requests of OpenAI: "that its members' content is not used for machine learning without their permission; and, OpenAI responds sincerely to claims and inquiries from CODA member companies regarding copyright infringement related to Sora 2's outputs."

"Respond sincerely," CODA reiterates, "such that both the healthy development of AI technology and the protection of rightsholders and creators' rights are ensured."

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