OpenAI, a leading AI firm, has released its new social media app Sora, which allows users to create content featuring recognizable properties from major studios across Hollywood. The company’s CEO, Sam Altman, has stated that the app will require an opt-in regime for studios’ intellectual property and likenesses, but insiders claim that this is not the case.
The first round of talks between OpenAI and talent agencies was contentious, with the tech giant’s personnel taking a “purposely misleading” tone. Some executives were told that an opt-in would be required for both intellectual property and likenesses, while others were informed that it would only apply to one. WME partner recounts being told that clients, including Matthew McConaughey, Michael B. Jordan, and Ryan Reynolds, would have to explicitly notify OpenAI not to use their faces and voices on the platform.
Despite this confusion, OpenAI has released its new app, which allows users to create content featuring copyrighted properties such as Bob’s Burgers, SpongeBob SquarePants, Gravity Falls, Pokémon, Grand Theft Auto, and Red Dead Redemption. The video generator is now the most popular free option on the App Store.
Industry insiders and talent agencies are concerned about OpenAI’s cavalier approach to intellectual property rights in Hollywood, which has led to a false bargain where they can use copyrighted material unless studios opt out. They argue that this creates a power imbalance and puts the onus on studios to notify the company that their intellectual property cannot be used.
The Motion Picture Association, CAA, UTA, and WME have publicly rebuked OpenAI, with some studios considering litigation as an option. Industry experts believe that Hollywood is fighting a battle of attrition against the well-capitalized AI industry, and it’s losing ground due to its slow response to piracy concerns.
The story highlights the need for clarity and transparency in AI licensing agreements, particularly when it comes to intellectual property rights. It also raises questions about the balance between innovation and protectionism in the entertainment industry, where studios must navigate complex relationships with talent agencies and AI companies like OpenAI.
Source: https://www.hollywoodreporter.com/business/business-news/sam-altman-openai-sora-agencies-talent-1236401618