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2h ago

Disney Issues Cease-and-Desist to Character.AI as Startup Removes Unlicensed Disney Bots

Disney cites brand harm plus child-safety risks, threatening legal action without written assurances.

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A screen shows the trading information and company logo for The Walt Disney company on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 7, 2025. REUTERS/Brendan McDermid/File Photo
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Overview

  • Disney’s Sept. 18 letter demands Character.AI stop unauthorized use of Disney, Pixar, Marvel and Star Wars characters, referencing potential Lanham Act and copyright violations.
  • Character.AI says it removed the bots named in the letter, describing all chatbots as user-generated and noting that some were inspired by existing characters.
  • The letter cites a ParentsTogether Action and Heat Initiative report alleging grooming, sexual exploitation, emotional manipulation and addictive interactions involving chatbots used by minors.
  • Disney warns it will pursue further remedies if it does not receive written confirmation of compliance, reflecting a wider studio crackdown that includes lawsuits against Midjourney and MiniMax.
  • Recent checks showed takedowns in progress, with some Disney bots initially still visible, as Character.AI seeks partnerships with rightsholders and continues to face safety-related lawsuits and regulatory scrutiny.