The Disney-OpenAI Deal Redefines the AI Copyright War; Wired, December 11, 2025

BRIAN BARRETT, Wired; The Disney-OpenAI Deal Redefines the AI Copyright War

 "“I think that AI companies and copyright holders are beginning to understand and become reconciled to the fact that neither side is going to score an absolute victory,” says Matthew Sag, a professor of law and artificial intelligence at Emory University. While many of these cases are still working their way through the courts, so far it seems like model inputs—the training data that these models learn from—are covered by fair use. But this deal is about outputs—what the model returns based on your prompt—where IP owners like Disney have a much stronger case

Coming to an output agreement resolves a host of messy, potentially unsolvable issues. Even if a company tells an AI model not to produce, say, Elsa at a Wendy’s drive-through, the model might know enough about Elsa to do so anyway—or a user might be able to prompt their way into making Elsa without asking for the character by name. It’s a tension that legal scholars call the “Snoopy problem,” but in this case you might as well call it the Disney problem.

“Faced with this increasingly clear reality, it makes sense for consumer-facing AI companies and entertainment giants like Disney to think about licensing arrangements,” says Sag."