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Ghibli, Bandai Namco and Square Enix execs pose before a screen showing OpenAI logo, with a gavel on a table.

Editorial illustration for Japanese Game Giants Slam OpenAI's Sora, Claim Copyright Law Violation

Japan Gaming Giants Demand OpenAI Halt AI Video Sora

Ghibli, Bandai Namco, Square Enix urge OpenAI halt AI; Sora opt-out breach law

Updated: 3 min read

Japan’s legendary game studios have had enough. Ghibli, Bandai Namco, and Square Enix are not asking. They are telling OpenAI to stop. Their target is Sora, the video generation tool, and the fight is over a core principle: you need permission first.

The studios, through their industry group CODA, argue OpenAI’s entire approach is backwards. Sora was built by training on data. The company’s policy was to let copyright holders opt out later.

In Japan, that’s not how it works. Permission comes first. By making the default “use now, ask later,” OpenAI may have already broken the law.

Altman announced last month that OpenAI will be changing Sora's opt-out policy for IP holders, but CODA claims that the use of an opt-out policy to begin with may have violated Japanese copyright law, stating, "under Japan's copyright system, prior permission is generally required for the use of copyrighted works, and there is no system allowing one to avoid liability for infringement through subsequent objections." CODA is now requesting on behalf of its members that OpenAI "responds sincerely" to its members' copyright claims and stops using their content for machine learning without their permission, which seems to include not just Sora output, but also the use of Japanese IP as training data.

Sam Altman’s recent promise to change Sora’s opt-out policy is a concession. It looks like an admission the original stance was untenable. For the studios, it’s too little, too late. They want a full stop, and a sincere response to their claim that their work was used without consent.

This is a direct challenge to the Silicon Valley playbook of moving fast and asking forgiveness. It’s a legal shot across the bow, grounded in a strict interpretation of Japanese copyright. The outcome could set a precedent for how AI companies operate in major creative markets. The studios are protecting decades of work, pixel by pixel.

Further Reading

Common Questions Answered

Which Japanese game companies are challenging OpenAI's Sora video generation tool?

Ghibli, Bandai Namco, and Square Enix have united to challenge OpenAI's Sora, arguing that its training methods violate their intellectual property rights. These major game studios are working through CODA to legally contest the AI platform's approach to content generation.

What is the key legal issue with OpenAI's current opt-out policy for Sora?

According to CODA, Japan's copyright system typically requires prior permission for using copyrighted works, which means OpenAI's opt-out approach may fundamentally violate legal standards. The organization argues that allowing creators to object after the fact does not meet the standard of obtaining consent before using intellectual property.

How has OpenAI responded to the concerns raised by Japanese game companies?

OpenAI's CEO Sam Altman recently announced changes to Sora's opt-out policy in response to mounting criticism. However, CODA is requesting that OpenAI provide a more sincere and comprehensive response to address the underlying copyright concerns raised by the game industry giants.

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