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As Apple And OpenAI Grow Partnership, Movie Studios Stand On Sidelines Of AI Battle

  • Writer: Dan Lalonde
    Dan Lalonde
  • Jul 23, 2024
  • 3 min read

Updated: Jul 26, 2024


The Silent Response Of Hollywood To AI And Intellectual Property Issues


OpenAI is teaming up with Apple, allowing the tech giant to have a role on its board. This move, reported by Bloomberg, marks another step for OpenAI in Hollywood as the industry contends with the disruptive potential of artificial intelligence. The partnership raises questions about the silence of major studios on the issues of AI and intellectual property.


Apple's Entry into the AI Arena


Last month, Apple’s head of the App Store and former marketing chief, Phil Schiller, took on an "observer" role at OpenAI. While this position doesn’t allow him to vote, it gives Apple an inside look into OpenAI’s operations, including its efforts to engage Hollywood with AI products. This is part of a broader strategy to integrate AI into entertainment, which OpenAI has been pursuing actively.


In February, OpenAI introduced Sora, an AI tool capable of generating hyper-realistic videos from simple text prompts. Beta testers have been using Sora to create their own projects, showcasing its potential to revolutionize video production. This tool can generate complex scenes with multiple characters and detailed backgrounds, promising a new era of AI-driven content creation.


The Studios' Standpoint


While OpenAI and Apple are forging ahead, major studios and the Motion Picture Association (MPA), which includes Disney, Warner Bros. Discovery, and Netflix, remain largely silent on the issue of AI and intellectual property. This silence is notable as OpenAI faces numerous lawsuits from artists, authors, and music publishers, accusing it of misappropriating copyrighted material. The legal disputes center on whether AI companies have "stolen the world’s IP" to train their systems and create new content.


Tech executives like Microsoft AI chief Mustafa Suleyman argue that copying and reproducing content has been a longstanding practice, likening it to freeware. This perspective has fueled concerns among creators about job displacement. OpenAI’s CTO acknowledged that some creative jobs might be eliminated by AI, suggesting that if AI-generated content surpasses human quality, those jobs might not have been necessary.


AI and Copyright Infringement


Studios have notably refrained from suing AI companies, despite evidence that AI tools might be using copyright-protected material in their training data. AI image generators, for instance, can produce near-exact replicas of film frames. Midjourney, an AI program, can generate images that closely resemble scenes from movies like "Avengers: Infinity War" and "Top Gun: Maverick" with minimal alterations.


This lack of legal action from studios contrasts with the stance of some of the MPA’s newer members, such as Apple and Amazon. These companies might be driving a wedge among studios by potentially licensing their content to AI companies, mirroring actions taken by some publishers.


The Policy Debate


The debate over AI and intellectual property has also reached the U.S. Copyright Office, which is exploring policy questions in this area. The MPA, alongside OpenAI, Meta, and other tech groups, argues that existing IP laws are sufficient to handle the issues posed by AI. This position is at odds with unions like SAG-AFTRA and the Writers Guild of America, which are calling for new legislation to protect members’ rights. They advocate for a federal right of publicity law to ensure members can profit from their images, voices, and likenesses.


As Apple and OpenAI deepen their partnership, Hollywood studios remain on the sidelines of the AI debate. This silence highlights the complex and divisive nature of AI’s impact on the entertainment industry. The future of AI in Hollywood will likely depend on how these issues of intellectual property and job displacement are resolved, shaping the next phase of digital content creation.


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