Bandai Namco and Square Enix Join Japan’s CODA to Challenge OpenAI Sora 2’s Use of Japanese Content

Japanese gaming industry titans Bandai Namco and Square Enix have officially joined a coalition of prominent publishers—including Studio Ghibli, Aniplex (a Sony subsidiary), Kadokawa, and Shueisha—in urging OpenAI to cease training its Sora 2 Generative AI model on their proprietary content.

This unified request was delivered through the Content Overseas Distribution Association (CODA), an organization representing leading anime, game, and manga publishers in Japan. CODA’s recent statement addresses widespread industry concerns that OpenAI’s Sora 2 has leveraged copyrighted Japanese works in its machine learning processes, potentially violating both domestic and international copyright laws.

As translated and reported by Automaton Media, CODA emphasized that the use of protected material without explicit prior consent "may constitute copyright infringement" under Japanese law. OpenAI previously implemented an opt-out mechanism, offering rights holders the ability to exclude their content from training data.

However, CODA argues that this system does not meet the stringent requirements of Japan’s legal framework, which dictates that prior permission is necessary for such use.

CODA has called on OpenAI to immediately halt the utilization of its members’ copyrighted content, and to address queries and allegations of infringement with seriousness and transparency. Sora 2, launched by OpenAI at the end of October 2023, quickly sparked public debate when it was discovered that the tool could generate videos drawing from a diverse range of existing copyrighted material, including video game and anime characters from globally recognized franchises such as those published by Nintendo.

This development alarmed content creators and rightsholders across the Japanese gaming and entertainment industries, well-known for their rigorous defense of intellectual property, such as with the Nintendo Switch’s global software launches and Nintendo Direct showcases. Since its inception, OpenAI has positioned itself as a pioneer dedicated to creating “safe and beneficial” AI systems.

However, the company has faced repeated scrutiny regarding the ethical and legal parameters of AI-generated content.

Recent headlines—including allegations from actress Scarlett Johansson regarding unauthorized voice use, and an ongoing legal dispute involving ChatGPT—underscore growing anxieties about AI’s impact on individual and corporate rights. In their collective statement, Japan’s largest publishers—represented by industry heavyweights like Bandai Namco and Square Enix—urge OpenAI to respect Japanese copyright law and to fully engage with legitimate claims from CODA members.

As generative AI models like Sora 2 continue to evolve, this case is likely to resonate throughout the global gaming community, potentially shaping the future of how user-generated content and proprietary IP are handled across platforms such as the Nintendo Switch and the broader Nintendo eShop ecosystem. This assertion by Japanese publishers marks a pivotal moment for the intersection of AI technology, copyright law, and the gaming industry, as developers and platform holders worldwide look towards Japan’s response for cues on safeguarding their creations in the digital era.

Square Enix Bandai Namco Japan Namco Enix Square Bandai Sora OpenAI publishers Sora 2 OpenAI Sora OpenAI Sora 2 CODA Studio Ghibli Aniplex Kadokawa Shueisha Nintendo Automaton Media ChatGPT