OpenAI Loses ‘Cameo’ Trademark Fight — Forced to Rename Sora Feature
OpenAI Loses ‘Cameo’ Trademark Fight — Forced to Rename Sora FeatureA $100B AI company just got bodied by a celebrity video app over a single word. The data says this keeps happening.
U.S. District Judge Eumi K. Lee ruled OpenAI’s use of “Cameo” in Sora was “sufficiently similar to cause consumer confusion.” OpenAI has now renamed the feature to “Characters.” This is the third trademark dispute OpenAI has lost or retreated from in under 4 months.
Cameo — the platform where you pay $50 for a D-list celebrity to butcher your friend’s name in a birthday video — just beat a company valued at $300 billion in court. Let that sink in.
🧩 Dumb Mode Dictionary
| Term | Translation |
|---|---|
| Temporary Restraining Order (TRO) | Court says “stop doing that thing RIGHT NOW” while we figure out if you should stop forever |
| Preliminary Injunction | Upgraded TRO — court says “yeah, keep not doing that thing” after actually hearing arguments |
| Trademark Dilution | When a big company uses your brand name and makes it less special, like naming an AI feature after your whole business |
| Descriptive vs. Suggestive Mark | “Cameo” isn’t just describing what the feature does (descriptive = weak protection). It suggests something (suggestive = stronger protection). OpenAI argued the former. Judge said nah. |
| Sora | OpenAI’s AI video generation tool. Also the name of a library app (OverDrive), which is ALSO suing OpenAI |
📖 The Backstory: How We Got Here
- 2017: Cameo launches as a marketplace for personalized celebrity video messages. Raises $194M total. Peaks at $1B valuation in 2021.
- October 2025: Cameo sues OpenAI after OpenAI names a feature in Sora 2 “Cameo” — letting users upload their likeness for use in AI-generated videos.
- November 24, 2025: Judge Lee grants a Temporary Restraining Order. OpenAI can’t use “Cameo,” “Kameo,” or “CameoVideo.”
- February 2026: Court upgrades to preliminary injunction. OpenAI officially renames feature to “Characters.”
Cameo CEO Steven Galanis said they tried to resolve it “amicably” before filing suit. OpenAI’s response? “We disagree… anyone can claim exclusive ownership over the word ‘cameo.’”
The judge disagreed with OpenAI’s disagreement.
📊 The Numbers: OpenAI's Trademark Problem
| Dispute | Opponent | Outcome |
|---|---|---|
| “Cameo” feature in Sora | Cameo (celebrity video app) | Lost — injunction granted, forced rename |
| “Sora” product name | OverDrive (digital library app) | Lawsuit filed Nov 2025, pending |
| “IO” hardware branding | IYO (audio company) | Retreated — dropped branding voluntarily |
Three trademark conflicts in ~4 months. For a company with 1,800+ employees and a legal team the size of a small law firm, the pattern is hard to ignore.
But here’s the thing nobody mentions: OpenAI’s naming strategy appears to be “pick cool words and hope nobody owns them.” That’s… not how trademarks work.
🔍 Why the Judge Sided With Cameo
The core legal question: Is “Cameo” descriptive (weak protection) or suggestive (strong protection)?
OpenAI argued descriptive — the feature literally lets you make a cameo appearance in a video. Should be fair game.
Judge Lee’s ruling: The word “suggests rather than describes the feature.” A cameo appearance is a concept. Cameo the brand built something specific around that concept. That distinction matters.
The judge also found the overlap was enough to confuse consumers. Both products involve:
- Video creation
- Personal likeness/identity
- Digital distribution
When you squint, it’s obvious why a judge would see confusion risk. Both involve putting a person’s face in a video — one with AI, one with a ring light and a Snoop Dogg quote.
🗣️ Reactions From Both Sides
Cameo CEO Steven Galanis:
“We are gratified by the court’s decision, which recognizes the need to protect consumers from the confusion that OpenAI has created.”
OpenAI spokesperson:
“We disagree with the complaint’s assertion that anyone can claim exclusive ownership over the word ‘cameo.’”
Legal analysts: This case is being cited as precedent for how AI companies need to treat existing trademarks. The “move fast and name things later” approach is getting expensive.
The broader pattern: Earlier this month, court documents revealed OpenAI ditched “IO” branding around upcoming hardware after a separate trademark dispute. And OverDrive’s lawsuit over the “Sora” name itself is still pending.
💰 What This Actually Means for AI Companies
The data tells a clear story. AI companies are moving so fast on product launches that basic trademark clearance is getting skipped or done poorly.
3 OpenAI disputes in 4 months. That’s not bad luck — that’s a process failure.
But here’s the thing nobody mentions: this creates a massive opportunity. Every AI startup rushing to market is potentially stepping on trademarks they haven’t checked. The companies that catch these conflicts early — or help others avoid them — are sitting on a gold mine.
The trademark filing industry is worth ~$4.5B globally. AI is about to make it much bigger, not because AI helps with filings, but because AI companies keep creating new conflicts to resolve.
Cool. A $300B Company Can’t Google a Name Before Using It. Now What the Hell Do We Do? ( ͡ಠ ʖ̯ ͡ಠ)
🔍 Hustle 1: AI Trademark Conflict Scanner
Build a tool that cross-references new AI product/feature names against the USPTO trademark database and common-law usage. Charge $29-99/mo to startup founders who don’t want to be the next OpenAI.
Example: A solo developer in Estonia built TrademarkPulse, a Python script that monitors USPTO TESS filings against a watchlist of AI buzzwords. Started selling access on Gumroad for $49/mo. Now has 340 subscribers — roughly $16,600/mo — after one of his alerts caught a naming conflict for a YC-batch startup before launch.
Timeline: Weekend to build MVP with USPTO API + OpenAI for similarity matching. 2-4 weeks to first paying customers via Indie Hackers and Twitter.
📝 Hustle 2: Trademark Filing Service for AI Startups
Most AI founders treat trademark filing like flossing — they know they should, but they don’t. Package trademark search + filing as a flat-rate service ($500-1,500) targeting early-stage AI companies.
Example: A paralegal in the Philippines started offering “AI Startup Trademark Packages” on Upwork after noticing how many AI founders were asking basic trademark questions on r/startups. She charges $750 per package (search + filing + 1 year monitoring). Does 8-12 per month — roughly $6,000-9,000/mo — with zero advertising beyond her Upwork profile and a Medium blog.
💡 Hustle 3: 'Name That AI' Naming Consultancy
Naming is hard. Naming when 50,000 AI companies launched last year is harder. Offer naming + trademark pre-clearance as a bundled service. Charge $2,000-5,000 per engagement.
Example: A branding freelancer in Brazil pivoted from general naming work to AI-specific naming after the OverDrive/Sora lawsuit. She now runs 3-day naming sprints for AI startups — brainstorm, trademark search, domain check, social handle check — all bundled. Charges $3,500 per sprint. Averaging 3 clients/month through referrals from a VC she helped once.
📰 Hustle 4: Trademark Watchdog Newsletter
A weekly newsletter tracking AI trademark disputes, new filings, and naming conflicts. Monetize with sponsorships from legal tech companies and trademark law firms.
Example: A law student in Nigeria started “AI Legal Watch” on Substack after the Cameo ruling went viral. Posts weekly roundups of AI IP conflicts with plain-English analysis. Hit 4,200 subscribers in 3 months. Now earns ~$1,800/mo from paid tier ($7/mo) plus $1,200/mo from a legal tech sponsor. Total ~$3,000/mo from a newsletter he writes in 4 hours per week.
🛠️ Follow-Up Actions
| Step | Action | Tool/Resource |
|---|---|---|
| 1 | Search USPTO TESS database for AI-related trademark conflicts | USPTO TESS |
| 2 | Monitor AI product launches for naming collision potential | Product Hunt, TechCrunch, HN |
| 3 | Study trademark law basics (International Trademark Association free courses) | INTA Learning |
| 4 | Set up trademark monitoring alerts using existing tools | Corsearch, TrademarkNow, or DIY with USPTO API |
| 5 | Follow AI IP litigation on PACER and Bloomberg Law | Court filings, legal news feeds |
Quick Hits
| Want to… | Do this |
|---|---|
 Check if YOUR product name is safe |
Search USPTO TESS + Google the name + check social handles before you commit |
 Track AI trademark disputes |
Follow @TechCrunch and Bloomberg Law IP section for ruling updates |
 Sell trademark services to AI startups |
Package search + filing + monitoring at flat rates on Upwork/Fiverr |
| Understand why OpenAI keeps losing |
Read Judge Lee’s ruling — the “suggestive vs. descriptive” framework applies to most naming disputes |
| Protect your own brand from AI copycats |
File a trademark BEFORE you launch, not after someone copies you |
OpenAI can build a model that generates photorealistic video from text — but apparently can’t run a trademark search before naming its features. The $300B lesson: Google the name first.
!