Tech
|After Investing| in OpenAI, |Disney Sues Google| for Using Its Works Without Compensation
The Walt Disney Co. sent a cease‑and‑desist letter to Google on Wednesday, alleging the tech company infringed Disney’s works to train and develop generative AI models without compensation, according to a copy of the letter obtained by Axios. This comes days after Disney announced a $1 billion investment in Google’s competitor OpenAI.
The letter increases copyright pressure on Google, which has been less aggressive about striking partnerships with copyright owners than some peers, including OpenAI.
What Disney Alleges
The letter was sent by David Singer, an attorney representing Disney. It alleges that Google’s “willful infringement is especially alarming because it is leveraging its dominance in generative AI and across multiple other markets to make its infringing AI Services as widely available as possible.”
The letter also alleges that Google has integrated its AI services into existing products and services, including Workspace applications and YouTube.
“Google’s AI Services are designed to free ride off Disney’s intellectual property,” the letter states. It alleges Google “has refused to implement any technological measures to mitigate or prevent copyright infringement, even though such measures are readily available and being used by Google’s competitors.” The letter adds that Google “continues to directly exploit Disney’s copyrights for commercial gain.”
Singer also claims Disney has raised concerns with Google for months, but that “Google has done nothing in response.” He adds, “If anything, Google’s infringement has only increased during that time.”
Google’s Response
Google said in a statement: “We have a longstanding and mutually beneficial relationship with Disney, and will continue to engage with them.”
The company added: “More generally, we use public data from the open web to build our AI and have built additional innovative copyright controls like Google‑extended and Content ID for YouTube, which give sites and copyright holders control over their content.”
Broader Context: Disney’s AI Copyright Campaign
Disney has taken what the report describes as a leadership position in Hollywood in pressuring AI firms over the fair use of content, and the company says those efforts have produced results.
Disney struck a comprehensive deal with OpenAI on Thursday. OpenAI initially said IP owners would have to opt out of having their copyrighted characters included in its Sora service but later shifted to an opt‑in policy after Hollywood backlash.
In September, Disney sent a cease‑and‑desist letter to Character.AI, raising similar allegations. The letter led Character.AI to change how it used Disney’s intellectual property.
In June, Disney and NBCUniversal filed a complaint against Midjourney, which the report describes as the first lawsuit by a major studio against a generative AI company. Warner Bros. Discovery sued Midjourney in early September.
Earlier this month, Disney joined NBCU and WBD in a lawsuit against the Chinese AI firm MiniMax, alleging large‑scale piracy of copyrighted works from their studios.
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Pakistan to Establish Its First Dedicated Council for Digital Businesses
The government has decided to establish Pakistan’s first Pakistan Council of Digital Economy as part of its efforts to strengthen the country’s expanding digital sector.
The initiative is aimed at creating an institutional framework to support digital businesses and accelerate the growth of the digital economy.
According to official sources, the Pakistan Digital Authority is preparing to form a separate council for digital businesses, structured on the lines of a chamber of commerce. The proposed council is expected to act as a formal platform representing digital companies operating across different segments of the economy.
The Prime Minister is expected to inaugurate the Pakistan Council of Digital Economy once the initial framework is finalized. The main objective of the council will be to bring digital companies together on a single platform to address common challenges and opportunities within the sector.
The council will facilitate coordination between the government and private digital companies, focusing on consultations related to online business issues, regulatory frameworks, taxation, and policy development. Through this platform, private sector input will be incorporated into decision-making processes related to the digital economy.
Officials said the Pakistan Digital Authority has already held consultations with around 40 private digital companies. The move is intended to ensure greater private sector participation in promoting the digital economy and to create a more supportive environment for digital innovation and investment in Pakistan.
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