In the confusing, rapidly expanding AI landscape, content creation and entertainment companies are filing massive copyright infringement lawsuits while simultaneously negotiating licensing agreements and striking deals. On December 11, Disney announced a deal with OpenAI. On the same day, it was reported that they accused Google of using its AI technology to engage in massive copyright infringement.
Disney Partners with OpenAI for Sora Character Licensing
Disney is investing $1 billion in OpenAI through a three-year partnership. This deal allows the AI company to use characters from Marvel, Star Wars, and Pixar in its Sora video generator. Starting early next year, users will be able to create videos featuring Disney characters like Cinderella and Mickey Mouse, though talent likenesses and voices are excluded.
The collaboration aims to expand Disney’s storytelling through AI while including safeguards against inappropriate depictions. User-generated videos may be streamed on Disney+, and Disney will use ChatGPT internally for employee support and to improve film production efficiency.
Creators Worried About Compensation and IP Protection
Hollywood unions responded with concern, particularly about artist compensation and intellectual property protection. The Writers Guild criticized OpenAI for potentially using members’ work without proper credit, while SAG-AFTRA noted Disney and OpenAI offered assurances about ethical technology use.
The deal marks a significant shift in Hollywood’s relationship with generative AI, though it comes amid ongoing copyright disputes between Disney and other AI companies.
Disney and Google’s Ongoing AI Copyright Battle
Meanwhile, Disney sent a cease-and-desist letter to Google, alleging large-scale copyright infringement by its AI system. The letter demands that Google stop using Disney’s intellectual property without authorization.
The company alleges Google copied Disney’s copyrighted works to train its Gemini AI models. According to the complaint, Google then distributed infringing images and videos of characters from franchises including The Simpsons, Pixar films, Star Wars, and Marvel. Disney claims Google operates like a “virtual vending machine,” mass-producing unauthorized copies of its characters, sometimes branded with Google’s logo.
No Progress in Negotiations
CEO Bob Iger stated that Disney had been in discussions with Google for months, raising concerns but making no progress, leaving them no choice but to take legal action. Disney demands that Google immediately stop the infringement and implement technological safeguards.
This follows similar cease-and-desist letters sent to Character.AI and Meta, as well as lawsuits against Midjourney and Minimax. Google responded by citing its longstanding relationship with Disney and its copyright protection tools.
Reuters – Dawn Chmielewski and Deborah Mary Sophia – December 11, 2025