OpenAI Revises Sora’s Copyright Policy Amid Legal and Ethical Controversies

OpenAI’s newly launched video-generation app, Sora 2, which swiftly became the top free app on Apple’s App Store, is facing significant legal and ethical challenges due to its use of AI-generated videos featuring copyrighted characters and controversial content. Initially permitting user-generated videos showcasing popular characters from franchises like "SpongeBob SquarePants" and "Rick and Morty," the app has drawn warnings from legal experts about potential copyright infringement lawsuits. Notably, OpenAI CEO Sam Altman announced forthcoming changes designed to give rights holders greater control, including an option to opt out of having their intellectual property used and plans to share revenue with those who permit their characters’ use. This marks a shift from the company’s earlier more permissive "opt-out" policy toward a more controlled and monetized model, responding to feedback from both users and rights holders. However, the app’s challenges extend beyond copyright issues; within days of launch, Sora 2 faced criticism over violent and racist AI-generated videos circulating on its social feed, raising concerns about content moderation effectiveness and misinformation risks. Experts like Stanford Law professor Mark Lemley and linguistics professor Emily Bender have highlighted the legal and ethical complexities posed by such synthetic media. OpenAI has acknowledged these issues, emphasizing ongoing efforts to improve safeguards and balancing creative freedom with respect for IP rights and social responsibility. This evolving situation underscores the difficult terrain AI platforms navigate amid rapid adoption and regulatory scrutiny.