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AI Startup Character.AI Removes Disney Characters From Its Chatbot Platform After Legal Letter

Disney aims to enforce intellectual property rights as Character.AI uses its copyrighted characters without permission in AI chatbots, following similar legal actions against other AI firms.

  • On Tuesday, The Walt Disney Company confirmed it sent a cease-and-desist letter last week to Character.ai to stop using copyrighted characters without permission.
  • Citing unauthorized commercial use, Disney wrote that Character Technologies, Inc. exploited Disney's copyrighted characters, harming goodwill and posing risks to children.
  • Most bots resembling Disney characters were taken down by Character Technologies, Inc., though a few remained on Tuesday, and the company said `it's always up to rightsholders to decide how people may interact with their IP.`
  • Disney warned it will take all necessary legal steps, including legal action, if Character Technologies, Inc. does not confirm ceasing alleged Lanham Act and copyright violations; this follows suits against Midjourney and others.
  • Amid a surge of legal pressure on AI firms, scrutiny rises with a $1.5 billion Anthropic settlement and Google's $2.7 billion licensing deal as 72% of American teens use chatbots.
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Seeking Alpha broke the news in United States on Tuesday, September 30, 2025.
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