Sam Altman says Sora will add ‘granular,’ opt-in copyright controls

OpenAI is significantly altering its copyright policy for the Sora video app, transitioning from an implicit opt-out model for intellectual property to an explicit 'opt-in' system for copyrighted characters, as announced by CEO Sam Altman. This shift aims to grant rightsholders more granular control over their IP's use in AI-generated content, addressing prevalent industry concerns. Concurrently, the company is exploring video monetization strategies, including potential revenue sharing with rightsholders.

Analysis

OpenAI may be reversing course on how it approaches copyright and intellectual property in its new video app Sora. Prior to Sora’s launch this week, The Wall Street Journal reported that OpenAI had been telling Hollywood studios and agencies that they needed to explicitly opt out if they didn’t want their IP to be included in Sora-generated videos. Despite being invite-only, the app quickly climbed to the top of the App Store charts. Sora’s most distinctive feature may be its “cameos,” where users can upload their biometric data to see their digital likeness featured in AI-generated videos. At the same time, users also seem to delight in flouting copyright laws by creating videos with popular, studio-owned characters. In some cases, those characters might even criticize the company’s approach to copyright, for example in videos where Pikachu and SpongeBob interact with deepfakes of OpenAI CEO Sam Altman. In a blog post published Friday, Altman said the company is already planning two changes to Sora, first by giving copyright holders “more granular control over generation of characters, similar to the opt-in model for likeness but with additional controls.” The key word here appears to be “opt-in,” suggesting that OpenAI will stop users from creating videos with copyrighted characters unless studios and others rightsholders have actually given Sora permission to do so. “We are hearing from a lot of rightsholders who are very excited for this new kind of ‘interactive fan fiction’ and think this new kind of engagement will accrue a lot of value to them, but want the ability to specify how their characters can be used (including not at all),” Altman said. Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025 Netflix, Box, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, Vinod Khosla — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before doors open to save up to $444. Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025 Netflix, Box, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, Vinod Khosla — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss a chance to learn from the top voices in tech. Grab your ticket before doors open to save up to $444. Even with this new approach, Altman acknowledged there are likely to be “some edge cases of generations that get through that shouldn’t.” The second change he mentioned is some unspecified form of video monetization. The company previously said its only plan for monetization was to charge users to create extra videos during periods of high demand, and Altman’s blog post seems to elaborate on that idea by acknowledging “we are going to have to somehow make money for video generation.” He also suggesting the revenue could be shared with rightsholders. “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.” OpenAI is undertaking a significant strategic pivot for its new video application, Sora, by shifting its intellectual property policy from a contentious opt-out framework to an explicit opt-in model for copyrighted characters. This pre-emptive move, announced by CEO Sam Altman, directly addresses major legal and reputational risks inherent in generative AI and appears designed to appease key content owners like Hollywood studios. By framing this as a new form of "interactive fan fiction" that can accrue value to rightsholders, OpenAI is attempting to reposition itself as a partner rather than a threat to the media industry. This change is coupled with the exploration of a direct video monetization strategy, which crucially includes the potential for revenue sharing with IP holders. While this integrated approach of controlled IP access and shared revenue could establish a more sustainable and legally defensible business model, significant execution risk remains. Altman's acknowledgement of potential "edge cases" getting through highlights ongoing technical challenges in content moderation, and the specifics of the monetization and revenue-sharing framework remain undefined.

Key Decisions for Investors

• Investors should view this as a net positive for established media companies with large IP libraries, as a successful opt-in and revenue-sharing model from a major AI platform could create a significant new high-margin licensing channel.
• Monitor the competitive landscape in generative AI, as OpenAI's move may set a legal and operational precedent, potentially increasing costs and barriers to entry for competitors who have not proactively engaged with content owners.
• While the new policy de-risks Sora's business model from a litigation standpoint, its financial viability is now tied to securing partnerships and an effective monetization strategy, making the terms of future media deals a critical factor to watch.