Lights, Camera, AI! OpenAI’s Sora has officially arrived on the scene, and Hollywood is scrambling. This isn’t just about cool new tech; it’s a full-blown reckoning with the future of intellectual property and AI licensing.
While legal teams are undoubtedly prepping lawsuits, the real game is figuring out how studios can work *with* AI companies. We’re talking beyond just OpenAI; every major player needs a strategy. As Michael Jury from AiPhelion puts it, studios should be exploring both litigation and “meaningful licensing discussions.”
## The Nascent World of AI Licensing
So far, major studios have been hesitant to publicly license content for AI training. The Lionsgate-Runway partnership, for example, focused on creating a custom model *for* Lionsgate, not licensing *to* Runway. However, some independent film and TV producers, along with streaming services, have dipped their toes in the water, often using AI licensing intermediaries.
Why are these deals happening? Sometimes it’s for ethical reasons – developers want “clean” models. Other times, it’s about accessing higher quality data or specialized content to fill gaps in training data that scraping simply can’t provide.
Interestingly, even companies that initially relied on the “fair use” defense are starting to consider licensing. This suggests a growing awareness that fair use might not hold up in court, making licensing a necessary hedge against potential legal challenges.
## Sora and the Future of Output Licensing
Sora, despite the disruption it’s causing, has clarified the path forward. Imagine licensing a specific character or likeness for use in AI-generated content. Rights holders and talent could grant consent, receive fair compensation, and maintain control over how their creations are used.
Even if OpenAI isn’t the partner, the monetization of AI outputs is inevitable. A studio could license a character’s IP to an AI company, allowing users to generate content featuring that character. This could involve upfront payments and royalties based on usage. Talent could also license their likeness, similar to celebrities who have lent their voices to chatbots or images to AI features.
## Navigating the Licensing Maze
AI licensing is a complex beast for Hollywood. Deals can easily pit studios against talent agencies and guilds. Character IP is often intertwined with talent likeness, meaning studios don’t have complete control over licensing their characters. As Vermillio CEO Dan Neely aptly puts it, “In order for studios to unlock the gold in the hills, they need talent to buy in.”
The key is to find a balance between licensing outputs (monetizing AI creations) and ensuring that AI companies don’t freely use studio content for training without permission. Luke Arrigoni, CEO at Loti, suggests focusing on the point of use: “Make money when AI companies try to create your materials… as soon as that model gets used, that’s when damages happen – so charge at that point.”
For studios, the challenge lies in crafting a strategy that addresses both the potential benefits and the inherent constraints of generative AI. The future of entertainment depends on it.
