Disney has struck a major three‑year licensing deal with OpenAI that lets Sora and ChatGPT Images generate videos and images, using more than 200 of Disney’s iconic characters and worlds, while also making a $1 billion equity investment in OpenAI.
Under the Disney OpenAI $1 billion deal, Sora (its AI video generator) and ChatGPT Images can use a library of over 200 animated and creature characters from Disney, Pixar, Marvel, and Star Wars, including Mickey Mouse, Yoda, characters from Frozen, Moana, Encanto, Monsters, Inc., and many others.
Users will be able to create and share short, social-style videos and images based on these characters and their iconic environments, costumes, and props, all prompted by text.
However, the deal does not include the use of real actors’ likenesses or voices; it is limited to Disney’s animated and creature characters and their fictional worlds.
Disney and OpenAI emphasise that they are committed to responsible AI use, with strong guardrails to prevent illegal or harmful content and to respect creators’ rights.
What does this mean for IP, copyright, and the future of creators in an AI world?
The website Wired says the deal will ‘redefine the copyright war.’
Meanwhile, quoted in Fortune, copyright and AI law expert Matthew Sag has a very insightful view. He says:
“While it’s impossible to license enough text to train an LLM (that would take a billion), it is possible to build image or video models entirely from licensed data if you have the right partners. This is why deals like Disney’s are crucial: They turn previously illegal outputs into legal ones, regardless of whether the training process itself qualifies as fair use.”
This deal reminds me of what one of our lecturers at Harvard Business School said this summer during the AI and Public Policy Executive Education programme. He made the point that there is real value in domain expertise and the LLM companies will be investing in original content.
On the other hand, creators are worried. The BBC quotes Cathy Sweet, Equity’s (the Union representing actors) head of TV and Film, saying:
“The deal between Disney and OpenAI reinforces exactly why our members are fighting for AI protections. The recorded material that will be sold on as part of this eye-watering big money deal is the result of creatives’ professional work, and their rights must be protected.”
The future of creators in an AI world
In this new landscape, creators will increasingly need to:
- License their own IP explicitly for AI use in contracts, specifying exactly what models can be trained on their work and what outputs are allowed.
- Protect their likeness and voice through personality rights or specific clauses, since Disney itself excluded real actors’ likenesses from the OpenAI deal.
- Build and control their own “brand” IP (characters, worlds, styles) that can be licensed, rather than relying only on work-for-hire gigs that studios then license to AI.
But I’m giving the last word to Pascal Hetzscoldt. In his Pascal’s Substack newsletter he writes:
“Disney just showed everyone that the future of AI and IP is not “sue or be sued”; it’s license and align, or be locked out.
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About the Podcast Host
Joanne Sweeney is a specialist in public-sector marketing and digital communications. She’s the author of Public Sector Marketing Pro and the creator of the Professional Diploma in AI for Public Sector Marketing. With years of experience in training, consulting, and advocating for digital transformation, Joanne provides insight and guidance for government agencies navigating the digital landscape. She is also the host of the award-winning Public Sector Marketing Show podcast.
