OpenAI’s IP Infringement Concerns Raised by Japanese Companies

Key Insights

• Request: The Content Overseas Distribution Association (CODA) has called on OpenAI to cease unauthorized use of their intellectual property.
• Allegations: Nearly 20 organizations claim that Sora 2 content closely resembles copyrighted Japanese works.
• Legal Standpoint: CODA argues that under Japanese law, an opt-in system for using copyrighted works is necessary.
• Government Action: The Japanese government has urged OpenAI to stop infringing on local anime and video games.

The Content Overseas Distribution Association (CODA), which represents several major Japanese entertainment companies such as TV studio Toei and game developer Square Enix, recently sent a written request calling on OpenAI to end its unauthorized use of their IP to train its recently launched Sora 2 generative AI.

Nearly 20 co-signers have accused the tech company of copyright infringement, alleging a “large portion” of Sora 2 content “closely resembles Japanese content or images” as a result of using Japanese content as machine learning data.” The letter mentioned OpenAI’s policy of using copyrighted works unless the owner explicitly asks to opt out, but argues under Japanese law, it should instead be an opt-in system, since permission for copyrighted works is generally required beforehand.

As such, CODA’s made two requests of OpenAI: that its members’ content aren’t used to train Sora 2 unless permission is given, and that OpenAI “responds sincerely to claims and inquiries from CODA member companies regarding copyright infringement related to Sora 2’s outputs.”

In mid-October, the Japanese government requested OpenAI stop infringing on the country’s local anime and video games like One Piece and Demon Slayer. At the time, Minoru Kiuchi, its minister of state for IP and AI strategy, called such works some of the country’s “irreplaceable treasures,” and other politicians have similarly criticized the generation model. Earlier this year, OpenAI CEO Sam Altman talked up being able to create Ghibli-like images via ChatGPT’s then-new update, which was then used by the White House to dehumanize immigrants and highlight President Donald Trump’s ongoing deportation efforts.

At time of writing, OpenAI hasn’t responded to CODA’s request—but in a longer statement, the companies warned they would “take appropriate legal and ethical action against copyright infringement, regardless of whether we use generative AI.”

[via Automaton]

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