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Disney Orders Character.AI to Remove Unlicensed Chatbots Using Its Characters

The demand underscores a broader studio push to police AI platforms over IP use tied to child-safety concerns.

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London, UK- March 10, 2022: The retail shop of Disney on Oxford street of London.
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

Overview

  • Disney sent a Sept. 18 cease-and-desist letter accusing Character.AI of unauthorized use of its IP and of misleading consumers under copyright and Lanham Act claims.
  • Character.AI says it removed the cited bots, emphasizes that characters are user-generated with some inspired by existing IP, and positions itself as open to licensing partnerships.
  • Disney’s letter cites a ParentsTogether Action and Heat Initiative report alleging grooming, sexual exploitation and emotional manipulation on accounts registered to children.
  • Examples identified in reports included chatbots impersonating Elsa, Moana, Peter Parker and Darth Vader, with news outlets observing removals and error messages as takedowns progressed.
  • The clash follows studio lawsuits targeting AI firms like Midjourney and MiniMax, and Disney warns it will seek legal remedies if further infringement persists.