Disney Hits Character.AI With Cease-and-Desist Over Unauthorized Character Use

The AI platform removed the copyright characters after its “infringing chatbots” were accused of being “harmful and dangerous to children”

The Disney logo is displayed on the facade of the Disney Store in Paris
The Disney logo is displayed on the facade of the Disney Store in Paris (Credit: Chesnot/Getty Images)

Character.AI, a platform that lets users chat with AI-powered characters or create their own, has removed copyrighted Disney characters from its service after receiving a cease and desist letter from the media giant for unauthorized use.

“Character.ai chose to systematically reproduce, monetize, and exploit Disney’s characters, that are protected by copyrights and trademarks, without any authorization, in a way that is anathema to the very essence of the Disney brand and legacy,” the letter, which was first reported by Axios, states. “Disney will not allow your company to hijack its characters, damage its brands, or infringe its copyrights and/or trademarks. Character.ai’s conduct is egregious and must stop immediately.”

The letter further alleges that the “infringing chatbots are known, in some cases, to be sexually exploitive and otherwise harmful and dangerous to children, offending Disney’s consumers and extraordinarily damaging Disney’s reputation and goodwill.” The claim is a reference to a recent report by the ParentsTogether Action and Heat Initiative, which found Character.AI chatbots engaged in “grooming and sexual exploitation” and “emotional manipulation” during conversations with accounts registered to children.

“If we do not receive written confirmation from you that Character.ai will cease the Lanham Act and copyright violations described above, Disney will take all necessary means to preserve and protect Disney’s intellectual property, brands, goodwill, and reputation,” the letter concludes.

A Character.AI spokesperson told TheWrap that the characters have since been removed. While noting that all of the characters on its service are generated by users, Character.AI said its always up to rights holders to decide how people may interact with their IP.

“We respond swiftly to requests to remove content that rightsholders report to us,” the spokesperson added. “We want to partner with the industry and rightsholders to empower them to bring their characters to our platform. Our goal is to give IP owners the tools to create controlled, engaging and revenue-generating experiences from deep fandom for their characters and stories, expanding their reach using our new, interactive format.”

The action against Character.AI marks the latest crackdown by Disney to protect its IP.

In June, Disney and Universal sued the AI firm Midjourney for copyright infringement, alleging it “blatantly” ripped off characters including Homer Simpson, The Minions and Elsa from “Frozen” by allowing users to create near-exact matches with its image-generating tool. In September, Warner Bros. Discovery joined its competitors with its own lawsuit against Midjourney, alleging a similar rip off of characters like Bugs Bunny, Batman, Scooby-Doo and Rick & Morty.

The suit against Midjourney came after The New York Times sued OpenAI for using its content to train ChatGPT without the paper’s consent. Other outlets, like The New York Daily News, have also sued OpenAI for using their articles without permission. On the other end, several media companies, including News Corp., Vox Media and Reddit, have struck partnerships with OpenAI.

On Tuesday, the Wall Street Journal also reported that OpenAI has notified talent agencies and studios that the new version of its Sora video generator will require them to opt out to avoid using their copyright material.

Comments