OpenAI is reportedly recalibrating its approach to copyright and intellectual property concerning its new video application, Sora. Prior to Sora's official launch, reports indicated that OpenAI had adopted a policy requiring Hollywood studios and agencies to explicitly opt out if they wished to prevent their intellectual property from being used in Sora-generated videos. Despite its invite-only status, the app rapidly ascended to the top ranks of the App Store charts, demonstrating significant immediate interest.

A distinctive feature of Sora is its 'cameos,' which allow users to upload biometric data to integrate their digital likeness into AI-generated videos. Concurrently, users have actively engaged in creating videos featuring popular, studio-owned characters, often seemingly disregarding copyright laws. Notably, some of these creations even depict copyrighted characters commenting on OpenAI's copyright stance, such as deepfakes of OpenAI CEO Sam Altman interacting with figures like Pikachu and SpongeBob.

In response to these developments and feedback, Sam Altman, OpenAI CEO, published a blog post outlining two imminent changes to Sora. The first significant change involves granting copyright holders "more granular control over generation of characters, similar to the opt-in model for likeness but with additional controls." The shift hinges on the term "opt-in," signifying a move away from the previous opt-out system. This new model suggests that Sora will prevent users from generating videos with copyrighted characters unless studios and other rightsholders have explicitly granted permission.

Altman noted that many rightsholders are enthusiastic about the concept of "interactive fan fiction" and anticipate that this new form of engagement will yield substantial value for them. However, these rightsholders also desire the ability to dictate precisely how their characters can be utilized, including the option to forbid any use. Despite this new, more controlled approach, Altman acknowledged the likelihood of "some edge cases of generations that get through that shouldn’t."

The second change mentioned pertains to an unspecified form of video monetization. While OpenAI had previously indicated plans to monetize by charging users for creating additional videos during peak demand, Altman's recent blog post elaborated on this by stating, "we are going to have to somehow make money for video generation." Significantly, he also suggested that revenue generated could be shared with rightsholders, expressing the hope that "the new kind of engagement is even more valuable than the revenue share, but of course we … want both to be valuable." This signals a strategic shift towards a more collaborative and potentially revenue-sharing model with content creators and IP holders.