Walt Disney has ordered Character.AI to remove chatbots that mimic its famous characters, accusing the startup of exploiting copyrighted and trademarked properties and warning that some bots had produced content “harmful and dangerous to children.” Character.AI confirmed it pulled the characters following the letter, which threatened further action under the Lanham Act and copyright law if the company did not comply.
The demand, dated this week, argues that the platform “systematically” reproduced and monetized Disney characters without permission and cites an advocacy report describing inappropriate interactions between user-made bots and accounts registered to minors. Character.AI said the offending bots were user-generated and reiterated that it responds quickly to rights-holder requests, adding that it wants to provide tools for studios to create controlled, revenue-generating experiences on the service.
News of the letter was first circulated by a business outlet and was later echoed by wire reports, which noted that Disney views the issue as a reputational risk in addition to a legal dispute. Character.AI, whose app lets people create and chat with AI personas modeled on fictional and public figures, has faced increasing scrutiny as entertainment companies move to police look-alike and sound-alike uses on generative platforms.
The move fits a broader enforcement push. In recent months, studios have filed lawsuits against AI firms over alleged unauthorized use of well-known characters, while publishers and tech companies have pursued a mix of litigation and licensing deals to set terms around data and IP. Disney’s letter signals that studios expect platform operators to preemptively curb infringing, off-brand, or age-inappropriate interactions tied to famous properties, and that they are prepared to escalate if voluntary removals fall short.
