Featured image of post Federal Court Rules Against OpenAI in Cameo Trademark Dispute

Federal Court Rules Against OpenAI in Cameo Trademark Dispute

A federal district court in Northern California has ruled against OpenAI in a high-profile trademark dispute, ordering the AI company to cease using the name “Cameo” for its video generation feature. The decision marks a significant legal victory for Cameo, the celebrity video platform, and underscores growing tensions around intellectual property rights in the artificial intelligence industry.

Court Rules Against OpenAI Over Feature Name

U.S. District Judge Eumi Lee granted a preliminary injunction blocking OpenAI from continuing to use the “Cameo” name for a feature within its Sora 2 video generation application. The feature had allowed users to insert digital likenesses of themselves into AI-generated videos.

The court determined that OpenAI’s use of “Cameo” was sufficiently similar to the established trademark to cause consumer confusion. Judge Lee rejected OpenAI’s argument that the term was merely descriptive, finding instead that “it suggests rather than describes the feature.” This distinction was critical to the court’s decision, as purely descriptive terms receive less trademark protection.

Background of the Dispute

Cameo, headquartered in Chicago, filed the lawsuit after OpenAI introduced its “Cameo” feature, which allowed users—including celebrities—to create virtual likenesses of themselves. The platform argued that OpenAI’s choice of branding created direct confusion with its own service, where customers purchase personalized video messages from celebrities.

The concern was particularly acute because both platforms featured the same celebrities, including Jake Paul, Mark Cuban, Ricky Berwick, and Snoop Dogg. According to the court’s order, this overlap meant “the two products may be indistinguishable to the consuming public.”

Cameo also raised concerns that tying its brand to “AI slop and deepfakes featuring celebrities” would damage its reputation, particularly given that Cameo’s offerings feature real celebrities rather than AI-generated representations.

OpenAI’s Response and Rebranding

After a temporary restraining order was granted in November, OpenAI proactively renamed the feature to “Characters.” However, the final ruling makes clear the company cannot use “Cameo” or any variation likely to cause confusion.

An OpenAI spokesperson expressed disagreement with the ruling, stating: “We disagree with the complaint’s assertion that anyone can claim exclusive ownership over the word ‘cameo,’ and we look forward to continuing to make our case.”

Industry Context

This decision is part of a broader wave of intellectual property disputes affecting OpenAI and other AI companies. The company has faced multiple legal challenges recently, including a lawsuit from digital library app OverDrive over OpenAI’s use of the “Sora” name and disputes with various artists, creatives, and media groups over copyright violations. Earlier in February, OpenAI also abandoned “IO” branding for upcoming hardware products due to trademark concerns.

Cameo CEO Steven Galanis emphasized the importance of the ruling: “We have spent nearly a decade building a brand that stands for talent-friendly interactions and genuine connection. This ruling is a critical victory not just for our company, but for the integrity of our marketplace and the thousands of creators who trust the Cameo name.”

The case highlights ongoing tensions between AI companies expanding into new markets and established platforms seeking to protect their brand identity and market position.

Photo by TheLawOfficeofBarryEJanay on Pixabay