"Ghibli Treated as Cheap... Ghibli Headquarters Can't Smile Despite the Big Boom [Business & Issues]"

Copyright Infringement Controversy Heats Up in Japan's Industry
Studio Ghibli Headquarters Remain Silent
High Likelihood of Copyright Disputes with ChatGPT

Sam Altman, CEO of OpenAI, posted a Ghibli-style image on his X (formerly Twitter) account. Using ChatGPT, he transformed a photo of the February summit between U.S. President Donald Trump and Indian Prime Minister Narendra Modi into a Ghibli-style illustration. Sam Altman X account

As OpenAI launched the ChatGPT image generation model, the 'Ghibli style' images it popularized have taken the world by storm, sparking growing copyright infringement controversies. Fake copyright infringement warning letters have even spread through social networking services (SNS). The Japanese animation company 'Studio Ghibli,' the copyright holder, has refrained from making official statements regarding copyright infringement concerns. However, industry insiders believe that if it is revealed that ChatGPT used original works without permission to generate Ghibli-style images, Ghibli could initiate legal action at any time.

700 Million ChatGPT Ghibli-Style Images Flooded in Just One Week... Copyright Controversy

Profile photo of Sam Altman, CEO of OpenAI (left), and a Ghibli-style image posted on his X (formerly Twitter) profile (right). Sam Altman X account.

Since OpenAI launched the ChatGPT image generation service on the 25th of last month, the number of images created in the Ghibli style has exceeded 700 million in just one week. ChatGPT's weekly active users (WAU) have increased by more than 150 million compared to the end of last year, and the number of paid subscribers has also risen by about 4.5 million.

Sam Altman, CEO of OpenAI, actively promotes the ChatGPT image generation service by posting a profile picture of himself transformed into the Ghibli style on X (formerly Twitter). CEO Altman said, "GPUs are melting down. Free subscribers can only generate three images per day using ChatGPT images," encouraging users to switch to the paid version.

As ChatGPT gained huge popularity for generating Ghibli-style images, copyright infringement controversies have also spread. It is argued that profiting from AI-generated images that imitate an original artist's style without permission should be sanctioned. Megumi Ishitani, animation director of the popular Japanese manga One Piece, strongly criticized on her SNS, calling it "an act that devalues Ghibli" and stating, "We cannot forgive Ghibli being treated cheaply and having its name tarnished."

However, OpenAI continues to maintain that there is no copyright infringement. OpenAI explained, "We have implemented a system that refuses image generation requests in the style of living artists," and added, "It is possible to refer to the overall style of a studio rather than an individual."

Fake 'Ghibli Copyright Warning Letters' Appear in Japan... The Actual Headquarters Remain Silent

On the 27th of last month, a fake Studio Ghibli copyright infringement warning letter circulated on X (formerly Twitter) and other social networking services (SNS). Studio Ghibli announced that they never distributed such a document, confirming it was a fake. X

Amid the growing copyright infringement controversy, fake news even emerged claiming that Ghibli sent warning letters regarding ChatGPT image transformations. According to NHK, on the 27th of last month, Ghibli copyright infringement warning letters spread through American X (formerly Twitter) accounts. The warning letters stated, "Images transformed into the Ghibli style constitute copyright infringement, and if not stopped, legal action will be taken." However, Ghibli told NHK that "there was no issuance of such warning letters," revealing that the letters were fake.

Ghibli has yet to issue an official statement regarding the copyright infringement controversy. However, director Hayao Miyazaki previously expressed a very negative stance on AI animation production. In a 2016 NHK documentary, he described AI-produced animation footage as "very disgusting," saying, "It feels like an insult to the drawings and life itself, which embody a person's lifelong effort, and I absolutely do not want to use it in my work."

Neither Ghibli nor its parent company, the Japanese private broadcaster Nippon Television, has issued an official statement yet. Ghibli currently operates by entrusting overall management, excluding animation production, to Nippon Television. Therefore, future statements are expected to come through Nippon Television.

In October 2023, Ghibli became a subsidiary of Nippon Television after selling a 42.3% stake. At that time, while searching for a management successor, director Hayao Miyazaki and producer Toshio Suzuki decided to sell the stake because Miyazaki's son, Goro Miyazaki, who was considered a strong candidate for succession, refused to take over, leading to the decision to entrust management.

Currently, Ghibli's founder Hayao Miyazaki and producer Toshio Suzuki serve as honorary chairman and chairman of the board, respectively, while Hiroyuki Fukuda, a director at Nippon Television, oversees management as Ghibli's CEO.

Copyright Disputes Expected with ChatGPT... More Disputes Likely Following NYT Lawsuit Outcome

Reuters Yonhap News

In the U.S. legal community, there is an analysis that even if drawing in the style of a specific production company is not copyright infringement, if original works were used in ChatGPT's image generation training, there could be grounds for copyright infringement.

Josh Weigensberg, a lawyer at the New York law firm Pryor Cashman, told the Associated Press, "The issue is whether OpenAI's AI model was trained on works by Ghibli or director Miyazaki, and whether licenses or approvals were obtained to allow such training," adding, "If such use of works is done without consent and compensation, it could be problematic."

Depending on the outcome of the ongoing copyright lawsuit filed by The New York Times (NYT) against OpenAI since last year, there is a possibility that lawsuits from animation and content production companies, including Ghibli, will follow. On the 4th, the U.S. federal court rejected OpenAI's request to dismiss the NYT's copyright infringement lawsuit. The court accepted NYT's claim that OpenAI used NYT articles without permission to encourage users to use paid content.

With the dismissal request denied, future copyright infringement lawsuits against OpenAI are likely to develop in favor of NYT. NYT alleges that OpenAI trained ChatGPT using news content without authorization. Conversely, OpenAI argues that AI training itself falls under 'fair use.' Fair use is a legal doctrine allowing the use of copyrighted works without permission for public interest purposes such as research, education, and reporting.