OpenAI's new video tool reveals a strategic trade-off: it is extremely restrictive on content moderation (blocking prompts about appearance) while being permissive with copyrighted material (e.g., Nintendo characters). This suggests a strategy of prioritizing brand safety over potential future copyright battles.

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The obvious social play for OpenAI is to embed collaborative features within ChatGPT, leveraging its utility. Instead, the company launched Sora, a separate entertainment app. This focus on niche content creation over core product utility is a questionable strategy for building a lasting social network.

While other AI models may be more powerful, Adobe's Firefly offers a crucial advantage: legal safety. It's trained only on licensed data, protecting enterprise clients like Hollywood studios from costly copyright violations. This makes it the most commercially viable option for high-stakes professional work.

Upcoming tools like Sora automate the script-to-video workflow, commoditizing the technical production process. This forces creative agencies to evolve. Their value will no longer be in execution but in their ability to generate a high volume of brilliant, brand-aligned ideas and manage creative strategy.

By striking a formal licensing deal for its IP, Disney gives a powerful counterargument against OpenAI's potential "fair use" claims for other copyrighted material. This willingness to pay for some characters while scraping others could be used as evidence in future lawsuits from creators.

Proficiency with AI video generators is a strategic business advantage, not just a content skill. Like early mastery of YouTube or Instagram, it creates a defensible distribution channel by allowing individuals and startups to own audience attention, which is an unfair advantage in the market.

Startups are becoming wary of building on OpenAI's platform due to the significant risk of OpenAI launching competing applications (e.g., Sora for video), rendering their products obsolete. This "platform risk" is pushing developers toward neutral providers like Anthropic or open-source models to protect their businesses.

Actors like Bryan Cranston challenging unauthorized AI use of their likeness are forcing companies like OpenAI to create stricter rules. These high-profile cases are establishing the foundational framework that will ultimately define and protect the digital rights of all individuals, not just celebrities.

When an AI tool generates copyrighted material, don't assume the technology provider bears sole legal responsibility. The user who prompted the creation is also exposed to liability. As legal precedent lags, users must rely on their own ethical principles to avoid infringement.

OpenAI launched Sora 2 knowing it would generate copyrighted content to achieve viral growth and app store dominance, planning to implement controls only after securing market position and forcing rights holders to negotiate.

After users created disrespectful depictions of MLK Jr., OpenAI now allows estates to request restrictions on likenesses in Sora. This "opt-out" policy is a reactive, unscalable game of "whack-a-mole." It creates a subjective and unmanageable system for its trust and safety teams, who will be flooded with requests.

OpenAI's Sora Prioritizes Strict Content Moderation Over Copyright Enforcement | RiffOn