OpenAI’s buzzy new video app Sora is already forcing a rethink on copyright and intellectual property, and that pivot could reshape how AI-generated video uses popular characters and real people’s likenesses.
Ahead of launch, The Wall Street Journal reported that OpenAI had told Hollywood studios and agencies they would need to explicitly opt out if they didn’t want their IP appearing in Sora creations. But after a rapid rise to the top of the App Store charts—even in an invite-only phase—OpenAI now says it’s preparing a more restrictive, permission-first system.
Part of Sora’s appeal is its cameo feature, where users can upload biometric data to generate videos starring their own digital likeness. Alongside that, users have been experimenting with studio-owned characters and even pairing them with deepfakes of CEO Sam Altman in videos that poke at the company’s copyright stance. That freewheeling creativity has also underscored the legal and ethical tensions around AI video generation.
In a new blog post, Altman outlined two upcoming changes. First, rightsholders will get more granular control over character use—shifting from an opt-out approach to an opt-in model. In practice, that means Sora would block the use of copyrighted characters unless permission is granted. Altman said many rightsholders are enthusiastic about “interactive fan fiction” and the engagement it could generate, but they also want to define exactly how their characters can be used—or prevent their use entirely. He also acknowledged that, even with stricter controls, some edge cases may slip through.
The second change is a clearer path to monetization. OpenAI previously suggested it might charge users for extra generations during peak demand. Altman now indicates the company “has to somehow make money for video generation,” and he floated the possibility of sharing revenue with rightsholders. The goal is to create a model where both engagement and revenue are meaningful for creators, studios, and the platform.
What this means for Sora users and the entertainment industry is a tighter alignment with existing IP rules: more licensed content, fewer unauthorized character cameos, and a framework that could reward rights owners when their creations inspire AI-powered “fan fiction.” For creators and brands, it signals a move toward clearer permissions, safer collaborations, and potentially new revenue streams. For everyday users, expect stronger content filters around copyrighted material and a continued focus on personal likeness features that stay within consent-based boundaries.
As Sora evolves, the balance between creative freedom, copyright compliance, and monetization will define whether AI video becomes a playground for participatory storytelling—or a curated ecosystem where licensed characters and user avatars share the spotlight under clearer rules.
