Key Takeaways
1. CODA, formed in 2002, aims to combat piracy and promote Japanese entertainment globally, including major companies like Square Enix and Studio Ghibli.
2. CODA has requested OpenAI to stop using copyrighted material for training its AI video tool, Sora 2, due to concerns over content similarities with existing Japanese works.
3. Sora 2’s outputs may infringe copyright as they closely replicate specific copyrighted pieces, raising legal concerns regarding the use of Japanese materials in AI training.
4. CODA argues that OpenAI’s opt-out mechanism for copyright owners does not comply with Japanese copyright laws, which typically require prior consent for the use of copyrighted works.
5. CODA demands OpenAI to protect its members’ intellectual property and respond to claims regarding potential copyright violations related to Sora 2’s outputs.
Japan’s Overseas Distribution Association (CODA) has made a formal request for OpenAI to stop using copyrighted material in the training of its AI video creation tool, Sora 2.
CODA’s Formation and Purpose
Established in 2002, CODA aims to combat piracy while enhancing the global presence of Japanese entertainment. The association includes major players like Square Enix, Bandai Namco, Kadokawa (the parent company of FromSoftware), Studio Ghibli, and Cygames. They reached out to OpenAI, led by Sam Altman, through an official letter expressing their concerns.
Sora 2’s Launch and Concerns
Sora 2 was announced on September 30, with an exclusive iOS release on October 1. In their letter, CODA made it clear that a significant amount of content generated by Sora 2 closely mirrors existing Japanese works. They have concluded that this similarity stems from utilizing Japanese materials as training data for the AI.
CODA expressed that when Sora 2 reproduces specific copyrighted pieces or creates similar outputs, it could be seen as copyright infringement due to the replication that occurs in the machine learning process.
Legal Standpoint of CODA
Furthermore, CODA pointed out that OpenAI’s opt-out mechanism, which requires creators to indicate their intellectual property to prevent its use as training data, does not align with Japanese copyright laws. They explained that:
Reports indicate that Sora 2 operates via an opt-out system responding to requests from copyright owners. However, under Japan’s copyright framework, prior consent is typically necessary for utilizing copyrighted works, and there is no system permitting one to escape liability for infringement through later objections.
The catalyst for this situation was Sora 2’s remarkable capability to create AI videos that closely imitate Japanese media. One viral video featured Sam Altman playing in a field with Pokémon characters, humorously captioned, “I hope Nintendo doesn’t sue us.” It’s worth noting that Nintendo is not affiliated with CODA.
CODA’s Demands
CODA’s requests to OpenAI are quite clear. OpenAI must ensure that the intellectual property of CODA members is not harvested without their consent. Failing to do so could lead to legal complications for Sam Altman.
CODA insists that OpenAI “addresses claims and inquiries from CODA member companies related to copyright violations concerning Sora 2’s outputs.”
These incidents have surfaced alongside a recent Japanese survey revealing that more than half of the surveyed Japanese companies, including Capcom and Level-5, are exploring AI for game development.
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