... Chatbots on the Character.AI platform impersonated well-known Disney characters such as Elsa, Moana, Peter Parker and Darth Vader and generated replies that simulated the “essence, goodwill, and look and feel of each character” and also incorporated their backstories, according to a letter dated Sept. 18 from a law firm representing Disney.
“These actions mislead and confuse consumers, including vulnerable young people, to believe that they are interacting with Disney’s characters, and to falsely believe that Disney has licensed these characters to, and endorsed their use by, Character.ai,” the letter said. “In fact, Character.ai is freeriding off the goodwill of Disney’s famous marks and brands, and blatantly infringing Disney’s copyrights.” ...
See the full story here: https://www.latimes.com/entertainment-arts/business/story/2025-09-30/ai-startup-character-ai-removes-disney-characters-from-its-chatbot-platform-after-legal-letter