Artificial intelligence is advancing at remarkable speed, bringing fresh opportunities alongside growing legal and ethical challenges. Recent developments in AI video generation, copyright regulation and high-profile lawsuits are redefining how technology and law intersect.

OpenAI’s launch of Sora 2, a next-generation video and audio generation model, marks a major leap forward in creative realism. The model can produce complex, physically accurate scenes—from Olympic gymnastics routines to paddleboard backflips—in cinematic or anime styles. It also generates authentic soundscapes, dialogue and effects, even incorporating real-world footage of individuals into synthetic environments.

Currently available to Pro users, Sora 2 represents a new level of creative control in AI-generated media. Such breakthroughs are testing the limits of copyright law. The U.S. Copyright Office is conducting an in-depth review following more than 10,000 public submissions on AI and intellectual property. Its forthcoming report will address whether AI-generated works can qualify for copyright protection and the legality of using copyrighted materials for training models. The Office maintains that works created solely by AI, without human authorship, are not eligible for protection—a position that could shape how future legislation evolves.

Legal disputes are intensifying. Warner Bros. Discovery has filed suit against image generator Midjourney, alleging infringement of DC Studios’ copyrighted characters. Meanwhile, AI company Anthropic has agreed to a $1.5 billion settlement over claims it used pirated books to train its models. The agreement could distribute around $3,000 each to more than 500,000 authors—one of the largest financial resolutions yet in an AI copyright case.

These cases illustrate the tension between innovation and intellectual property rights. As AI models become more powerful and accessible, the need for clear governance grows. Regulators, technology firms and creatives alike are now working to establish fair standards that encourage progress while protecting original work.

For the UK, the challenge—and the opportunity—lies in leading responsibly. By combining legal clarity with continued support for innovation, policymakers and industry can help build an ethical, sustainable AI ecosystem that empowers creators and safeguards public trust.

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