December Update: Collaboration Is Heating Up – OpenAI Licenses Disney Content
Introduction
In our blog post [linked here] (December 10, 2025) we described the shifting landscape concerning generative AI and how a few AI companies were reevaluating their relationships with content owners and how they were increasingly leaning toward licensing content. The next day’s December 11, 2025 announcement by OpenAI and Disney demonstrates how rapidly this trend is accelerating.
Rapidly Shifting Landscape and Predictions
As discussed in our prior blog post, the ongoing litigation and legal uncertainty surrounding copyright protection and fair use has encouraged companies such as Perplexity and Udio to enter into licensing partnerships with content owners. We concluded that some AI companies are realizing that the “first mover” approach, training their models on unlicensed content to get to market quickly, may not be the most prudent strategy considering the mounting legal risks. As of December 11, 2025, one of these “first movers,” OpenAI, announced a three-year licensing partnership with Disney, enabling OpenAI’s Sora platform to generate short, user-prompted social videos based on over 200 characters from Disney’s animated library. Among the characters that people will be able to use in Sora videos are Cinderella, Black Panther, Captain America, Iron Man, Darth Vader, R2-D2 and Luke Skywalker. Apparently, the partnership is exclusive for an unspecified timeframe during the three-year agreement. Bob Iger, CEO of Disney, indicated on CNBC that the deal made sense since OpenAI agreed to pay unspecified license fees to Disney. Disney will also be able run Sora videos on Disney+ and agreed to invest $1B into OpenAI.
While speaking on the agreement, OpenAI CEO Sam Altman emphasized OpenAI’s sharp turn from being a combatant to a collaborator with at least one content owner. He noted that “this agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.” This may be indicative of what’s to come from other first movers in the AI race for supremacy.
Licensing partnerships may become standard among AI companies to manage prospective legal harm and uncertainty while maintaining sustainable business operations. This shift is especially notable considering a key battle on appeal at the Third Circuit – Thomson Reuters v. Ross Intelligence, Inc. As the first copyright infringement case between an AI company and a content owner to reach the appellate stage, the forthcoming decision will serve as a key guidepost for how courts apply the copyright doctrine of “fair use” in the era of generative AI. The Third Circuit’s decision may ultimately influence the next stage in this ever-shifting landscape. To address these legal risks and to encourage partnerships, there is a need for technological platforms that help to enable a marketplace for content.
Stay tuned for another blog post on this topic, where we explore the Third Circuit case between Thomson Reuters and Ross Intelligence, Inc., and discuss how its outcome may impact the generative AI industry.
By Bob Steinberg, Ben Resnick
Bob Steinberg is the Founder of Generative IQ® LLC, a venture fund that provides capital to early-stage IP rich AI start-ups. He has been protecting and litigating IP rights, working with technology entities and entrepreneurs navigating the IP landscape and monetizing blocking rights for over 30 years.
Ben Resnick is a J.D. Candidate 2027 at Southwestern Law School, where he serves as a Student Editor on the Journal of International Media & Entertainment Law. He graduated from California Polytechnic State University, San Luis Obispo, in 2020 with a degree in Business Administration and a concentration in Financial Management. Ben enjoys playing tennis, hiking, surfing, and reading. He also loves to support the local LA sports teams and explore new restaurants and neighborhoods around LA.
