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The intersection between generative AI and Intellectual Property is becoming increasingly interesting, and this latest development between Disney and OpenAI is a particularly useful case study.
Some background
Disney has entered into a three-year licensing and investment agreement with OpenAI, reportedly worth USD1 billion. Under this deal, OpenAI's generative video platform Sora (and ChatGPT Images) will be authorised to generate short, user-prompted videos and images using more than 200 Disney-owned characters, spanning Disney classics, Pixar, Marvel and Star Wars.
Importantly, these are licensed uses of IP - not scraping, imitation or "inspired by" lookalikes. Fans will be able to create and share short-form content, with curated selections potentially streamed on Disney+.
What makes this an IP-first deal?
- Clear licensing of copyrighted characters, environments and props
- Explicit exclusion of real actors' likenesses and voices
- Guardrails around brand safety, content moderation and age-appropriate use
- A shared emphasis on respecting creator rights and performer protections
This is Disney saying: AI isn't the problem - unlicensed use is.
Why this matters for IP law
Much of the current AI debate focuses on whether models were trained on copyrighted material without permission. Disney's approach flips the script by demonstrating a commercially viable licensing model where:
- Rights holders are compensated
- IP ownership remains intact
- Innovation still moves forward
At the same time, unions representing writers, animators and performers have raised concerns about compensation and creative labour - a reminder that IP rights are only one piece of a much bigger ecosystem.
The takeaway
This deal sets a powerful precedent. If AI companies want access to iconic brands and characters, the path forward is increasingly clear: negotiate, license, and pay.
AI and creativity don't have to be at odds - but IP sits firmly at the centre of making that relationship sustainable.
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