OpenAI is facing a challenge from companies like Square Enix and Bandai Namco through the External Content Distribution Association (CODA) regarding the use of their intellectual properties in training its systems.
The group, which includes Kadokawa and Cygames in addition to the two developers, warns that legal action will be taken against the Sam Altman corporation if copyright-infringing content is not removed.
The out-of-court notice is expected, particularly considering the recent developments surrounding Sora 2. Following its release, the OpenAI platform saw an influx of brief videos faithfully replicating series such as Pokémon and Nintendo properties.
Japanese Association is dissatisfied with OpenAI.
The Outdoor Content Distribution Association, established in 2002, works to combat the piracy of Japanese films, music, animations, and TV shows. Notably, while companies like Square Enix, Kadokawa, and Bandai Namco are involved, Nintendo is not a member.

CODA stated that characters from Sora 2 are included in the system due to training based on protected intellectual properties, potentially leading to copyright infringements during the machine learning process.
The organization mentioned that the OpenAI system’s operations violate authors’ rights under Japanese laws. In the video creation system using generative artificial intelligence, brand owners and characters need to take action to prevent their content from being used.

Altman was surprised by the sudden popularity of Pokémon videos on the platform and saw it as an unexpected development. This trend also offered brands and companies more authority in managing their properties and access to unique controls not accessible to regular users.
Source: Game Developer

Atomic explosion!
NVIDIA and Open AI could play a central role in the AI industry’s growth.