Disney - OpenAI and the surprisingly short monopoly clause

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The deal between Disney and OpenAI is subjective for just one year.

The cooperation agreement between Disney and OpenAI was announced last week but is still attracting great attention from the technology and media world, not only because of the scale of the partnership but also because of the surprisingly short-term monopoly clause.

According to Disney's CEO Bob Iger, the licensing deal is three years long but only includes one year of monopoly, after which Disney has full freedom to cooperate with other artificial intelligence companies.

Mr. Iger said that limiting the monopoly period was an arbitrary choice.

Accordingly, in the first year, OpenAI will be the only artificial intelligence platform allowed to legally exploit more than 200 iconic characters of Disney, Marvel, Pixar and Star Wars through the Sora video creation tool.

For OpenAI, this is considered an important strategic advantage. Owning the world's most famous content and character warehouse makes Sora a rare AI platform that can create videos based on global entertainment brands without legal barriers on copyright.

This makes a big difference in the context that many AI companies are facing lawsuits related to training data and intellectual property rights.

On the other hand, Disney approaches artificial intelligence with a cautious attitude.

The exclusive one-year agreement is considered a "testing phase", helping the entertainment group evaluate commercial performance, brand impact and legal risks when bringing intellectual property into generative AI platforms.

No generation of man can stop technological advancement, and we have no intention of doing so, Mr. Bob Iger emphasized.

According to Disney's leaders, if new technology has the ability to change the current business model, the best approach is to proactively participate instead of staying on the sidelines.

Notably, on the same day announcing its partnership with OpenAI, Disney sent a letter asking Google to stop alleged copyright infringement.

Although Google has not confirmed or denied the allegations, this move shows that Disney is pursuing a strategy of being ready to cooperate with AI when there is a clear control mechanism, but determined to protect intellectual property against potential risks.

Analysts say the Disney - OpenAI deal reflects a new trend in the entertainment industry: no longer avoiding AI, but also not giving full control. After the first year of monopoly, Disney is likely to expand its cooperation with other AI platforms, creating a more fierce competitive environment in the field of generative content, while taking the initiative with its "precious gems".

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