Trademark Showdown: OpenAI's 'Cameo' Ban Highlights AI Legal Risks

OpenAI has been temporarily barred from using the term "Cameo" in its Sora AI video-generation app following a federal court ruling, marking a significant legal setback for the artificial intelligence giant. U.S. District Judge Eumi K. Lee granted a temporary restraining order on November 22, prohibiting OpenAI from employing the word "Cameo," along with variations like "Kameo" or "CameoVideo," in connection with Sora's features until December 22 according to court documents. The decision stems from a trademark lawsuit filed by Chicago-based Cameo, a platform enabling fans to purchase personalized videos from celebrities as reported by the Los Angeles Times.

The dispute arose after OpenAI introduced a Sora feature in September allowing users to generate AI-created videos featuring digital likenesses of themselves or others according to TechBuzz. Cameo, which has operated since 2017 and built its brand around celebrity video messages, argued that OpenAI's use of the term created "consumer confusion" and diluted its trademark. "We are gratified by the court's decision," Cameo CEO Steven Galanis stated. The platform cited instances where users contacted Cameo seeking support for Sora's "Cameo" feature, underscoring the overlap in branding according to Publishers Weekly.

The temporary restraining order creates an immediate operational hurdle for OpenAI as it scales Sora, a tool already generating viral content. The app's "Cameo" feature, which allows users to insert AI-generated likenesses into videos, has attracted millions of downloads as reported by TechBuzz.

However, the court's decision highlights growing tensions between AI startups and established brands over intellectual property. Cameo's lawsuit is part of a broader wave of legal challenges against OpenAI, which also faces copyright infringement claims from authors, news organizations, and OverDrive according to Publishers Weekly and according to Publishers Weekly.

OpenAI has contested the ruling, asserting that the term "cameo" is generic and not exclusively owned by Cameo. "We disagree with the complaint's assertion," an OpenAI spokesperson said. The company's defense mirrors its broader legal strategy in intellectual property cases, including its recent arguments in India's Delhi High Court over alleged copyright violations in training its large language models according to Business Standard.

The case underscores the precarious legal landscape for AI companies launching consumer-facing products. Judge Lee's order sets a December 19 hearing to determine whether the ban on "Cameo" should become permanent according to CNBC. Meanwhile, OpenAI must navigate the dual challenge of defending its branding while addressing mounting litigation over data usage and trademark conflicts.