Character.AI Removes Disney Characters After Cease-and-Desist Letter

Disney sent a cease-and-desist letter to Character.AI demanding removal of Disney-owned characters from the AI chatbot platform. The entertainment giant cited copyright infringement and brand damage, with Disney's lawyer stating the company was "freeriding off the goodwill of Disney's famous marks and brands." The letter specifically highlighted concerns about sexually exploitive and harmful content associated with Disney characters, which Disney argued was "extraordinarily damaging" to their reputation and goodwill.

Character.AI quickly complied with Disney's demands, removing major Disney characters including Mickey Mouse, Donald Duck, Captain America, and Luke Skywalker from search results. However, the removal appears incomplete, as some Disney-associated characters like Percy Jackson and Hannah Montana still appear on the platform. This selective compliance suggests Character.AI may be taking a cautious approach while determining which characters fall under Disney's copyright claims.

The dispute highlights ongoing safety concerns with Character.AI's platform, which allows users to create chatbots based on real people and fictional characters. The platform has faced serious criticism, including a lawsuit from a family whose teenage son allegedly received encouragement to commit suicide from a Game of Thrones-inspired chatbot. This Disney case demonstrates how intellectual property holders are increasingly scrutinizing AI platforms that use copyrighted characters without permission, potentially setting precedent for future copyright enforcement in the AI space.