Why Sam Altman is offering studios 'opt-in' control over Sora content

Sam Altman says OpenAI will introduce opt-in controls for studios and explore revenue-sharing models to address copyright challenges around its AI video app, Sora

OpenAI CEO Sam Altman has said the company is reversing course on its copyright policy for Sora, its new AI video-generation app. In a blog post on October 4, Altman announced that OpenAI will introduce opt-in controls for copyrighted characters and explore new monetisation models, including potential revenue-sharing with rightsholders. 

 

The move follows weeks of industry backlash and quiet talks with Hollywood studios, which raised red flags over Sora’s use of iconic characters in AI-generated clips.

 

What’s the latest

 

The change marks a shift from OpenAI’s earlier 'opt-out' policy, under which studios and agencies had to explicitly request exclusion from Sora’s content generation. The Wall Street Journal reported that Hollywood stakeholders were concerned about their IP being used in user-generated videos without authorisation.

 

Altman said OpenAI has been “learning quickly from how people are using Sora” and will soon roll out “more granular control over generation of characters", similar to the app’s opt-in system for likenesses. The update aims to ensure users cannot generate videos featuring copyrighted characters unless studios and creators grant permission.

 

“We are hearing from a lot of rightsholders who are very excited for this new kind of ‘interactive fan fiction'," Altman wrote. “They want the ability to specify how their characters can be used—including not at all.”

 

He acknowledged that “some edge cases of generations that get through that shouldn’t” may still occur. 

What are the copyright concerns around Sora?

 

Sora, which is currently invite-only, topped App Store charts shortly after launch. One of its distinctive features, “cameos,” allows users to upload biometric data to insert their digital likeness into AI-generated videos. However, many users have been creating clips featuring popular, studio-owned characters such as Pikachu and SpongeBob, sometimes in videos parodying OpenAI itself.

 

Legal experts say this could make Sora a flashpoint in the growing debate over AI and copyright. “Characters are copyrightable—third parties can’t use them without permission,” Mark Lemley, professor at Stanford Law School, told CNBC. “If a company loses control over what their copyrighted characters do and say in user-generated videos, it’s going to be a problem.”

 

Media companies have already begun to act. Disney and Universal have sued AI image generator Midjourney for allegedly using copyrighted movie characters. Disney also issued a cease-and-desist notice to Character.AI last week.

 

What has been OpenAI’s response?

 

Varun Shetty, OpenAI’s head of media partnerships, told CNBC the company will “work with rightsholders to block characters from Sora at their request and respond to takedown requests".

 

OpenAI also maintains a 'copyright disputes' form that lets content owners flag specific material and allows users to report copyright or trademark violations directly through the app. The company said these measures offer “granularity on a character-by-character basis", distinguishing them from blanket opt-outs.

 

Why it matters

 

The shift from an opt-out to an opt-in model could set a new precedent for how AI platforms handle creative rights. It reflects mounting pressure from studios, artists, and regulators to curb misuse of intellectual property in generative AI tools.

 

OpenAI’s decision also signals a willingness to collaborate with rightsholders rather than challenge them, which is in contrast to its earlier disputes over AI training data. 

 

At the same time, Altman’s mention of revenue sharing hints at a potential new business model that could monetise both user creativity and licensed character use. That approach might ease legal tensions but could also blur the line between content ownership and co-creation.

 

“Our hope is that the new kind of engagement is even more valuable than the revenue share, but of course we want both to be valuable,” Altman said in his blog post.