Hollywood Intensifies Fight Against AI Image Generation, Demanding Control and compensation
The entertainment industry is escalating its opposition to artificial intelligence (AI) image generation, specifically challenging OpenAI‘s approach of requiring rights holders to “opt-out” of having their content used to train AI models. Major studios and unions are asserting that existing copyright law already protects their intellectual property (IP) and that permission, not post-creation removal, should be the standard.
The conflict arose following the launch of OpenAI’s Sora 2, a video generation tool. Companies like Creative Artists Agency and United Talent Agency argued their clients possess the right to control and receive compensation for the use of their likenesses. Warner Bros. Finding reinforced this stance, stating that established copyright law already prevents infringing uses of protected IP without requiring proactive “opt-out” measures.
The situation has heightened concerns within unions like SAG-AFTRA, particularly after the emergence of a completely AI-generated composite character, “Tilly Norwood,” which alarmed members. SAG-AFTRA leadership released a statement emphasizing that OpenAI’s “opt-out” model jeopardizes the economic foundation of the entertainment industry and underscores the importance of ongoing litigation addressing these issues.
The dispute highlights a fundamental difference in philosophies: Silicon Valley’s “move fast and break things” approach versus Hollywood’s cautious approach to new technology and its strong desire to protect valuable IP. Legal experts note the core issue is balancing AI capabilities with pre-existing rights.
In response to the widespread criticism, OpenAI’s Sam Altman announced plans to provide more granular controls for rights holders and explore compensation mechanisms for video generation. The company claims to have implemented safeguards to prevent the generation of well-known characters and a review team dedicated to removing policy-violating content. Rights holders can also request content removal.
Legal professionals suggest the industry’s strong reaction is a strategic effort to compel OpenAI into establishing licensing agreements for content used in AI training. Ray Seilie, an entertainment litigator, emphasized that the onus is on AI companies to ensure lawful usage, stating, “It’s not your job to go around and tell other people to stop using it. If they use it,they use it at their own risk.”
Disney, Global, and Warner Bros. Discovery have already initiated legal action against other AI firms, MiniMax and Midjourney, alleging copyright infringement. A key challenge remains determining a fair compensation model. Industry figures argue against a “one size fits all” flat fee, advocating for monetization strategies tailored to individual talent and studio needs. Dan Neely, CEO of Vermillio, stated the need for “monetization that is not a one size fits all” to truly address the concerns of talent and studios.
