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This Week in Startups

Non-commercial use, IP ownership, and Disney's position on character creations

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The issue of fair use and copyright infringement arises when it comes to creating Disney-inspired characters. Commercial products like Chad GPT, which charges $20, raise legal questions. Open source projects are less susceptible to lawsuits. The laws around intellectual property and fair use differ globally, but people tend to follow the lead of the United States. While there are no clear boundaries, non-commercial uses like a child drawing a Jedi knight are generally allowed. However, introducing commercial benefit gives original IP owners the right to control opportunities. Disney should incorporate an AI feature in Disney Plus that allows users to create characters. Etsy is an example of people facing trouble for creating bespoke products. Disney engages in a constant tug-of-war, allowing or disallowing certain creations. Although the protagonist bought a Jedi outfit for a samurai party, as Jedi were inspired by samurai, it raises questions about copyright infringement.

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