Why Disney Told Google To Stop Using Its IP While Making A Deal With OpenAI

This one was so big that you may have already heard about it even if you do not have your ear to the ground for IP news. In December 2025, The Walt Disney Company sent a cease-and-desist letter to Google alleging unauthorized use of Disney's copyrighted works in connection with Google's artificial intelligence systems. Then, almost immediately after news of that dispute surfaced, Disney announced that it was working with OpenAI.

At first glance, the sequence appeared contradictory. Why would Disney tell one technology company to stop while partnering with another? For businesses watching the rapid evolution of artificial intelligence, the answer offers an important lesson about copyright law, licensing, and control in the AI era.

Let us break it down piece by piece.

Disney's Cease-and-Desist to Google

Disney's letter to Google alleged that Google's AI tools were using Disney-owned content without permission. According to Disney, Google's systems were training on, generating, or distributing content that included recognizable Disney characters and elements from its well-known franchises. Disney asserted that this activity infringed its copyrights and created unauthorized derivative works.

A cease-and-desist letter is a common enforcement tool in intellectual property law. It formally notifies the recipient of alleged infringement and demands that the conduct stop. While it does not automatically lead to litigation, it establishes a clear record that the rights holder has asserted its claims and expects corrective action.

Following the letter, Google reportedly removed some AI-generated content from its platforms and reiterated its position that it takes copyright compliance seriously. Google did not admit wrongdoing, but its response reflects how companies often act quickly when faced with formal IP enforcement.

Here is where it got a little weird for many people.

The OpenAI Announcement

Shortly after the dispute with Google became public, Disney announced that it was working with OpenAI. While the full scope of that relationship has not been immediately disclosed, the timing was striking. Disney appeared to be drawing a sharp line between unauthorized use of its intellectual property and AI development that occurs through collaboration and agreement.

From a legal perspective, this distinction is critical. Disney's position is not that artificial intelligence is inherently problematic. Instead, the company is signaling that the use of its copyrighted works must occur with permission, under defined terms, and through relationships that provide oversight and compensation.

Enforcement Versus Collaboration

These two moves reflect a broader strategy that many major rights holders are now adopting. Enforcement and collaboration are not mutually exclusive. A company can aggressively protect its intellectual property against unlicensed uses while simultaneously embracing new technologies through licensing and partnerships.

For Disney, a cease-and-desist letter serves to stop activity it believes is unlawful. A deal with OpenAI, by contrast, allows Disney to shape how its content is used, maintain brand integrity, and participate in the economic upside of AI innovation.

What This Means for the Future of AI When Utilizing IP

This situation highlights several important takeaways for business owners, developers, and decision-makers:

Copyright law still applies where AI is concerned. Training models or generating content using copyrighted material can trigger enforcement if it occurs without permission.

Cease-and-desist letters remain powerful tools. They are often the first step in resolving disputes, setting boundaries, or opening negotiations.

Licensing is becoming central to AI strategy. Many content owners prefer negotiated agreements over litigation, especially when technology companies are willing to collaborate.

Control matters as much as technology. Rights holders are less concerned with whether AI exists and more focused on how their IP is used and who benefits from it.

The Bigger Picture of AI and IP

Disney's actions illustrate a key reality of modern intellectual property law. Innovation is welcome, but it must happen within a framework that respects ownership and consent. Artificial intelligence does not eliminate copyright rights. Instead, it increases the importance of clear agreements, thoughtful licensing, and proactive enforcement.

For businesses operating in or around AI, the message is clear. The future will belong to those who treat intellectual property not as an obstacle, but as a foundation for responsible collaboration.

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