Disney has sent a cease and desist letter to Character.AI, demanding the platform stop hosting chatbots based on its characters. According to the letter, Character.AI enabled users to interact with bots impersonating figures from Disney, Pixar, Marvel, and Star Wars without authorization. It’s something Disney argues amounts to copyright and trademark infringement.
This wasn’t just about money. The letter stressed that Disney’s priority was protecting its brand image and reputation. It cited reports of inappropriate, even predatory conversations involving chatbots based on Disney characters with accounts registered to children.
Character.AI’s Cleanup Job
Character.AI responded by removing the characters Disney flagged. The company acknowledged that rights holders ultimately decide how their IP is used, saying it complies quickly with takedown requests. A spokesperson even hinted at building tools to give companies like Disney more direct control. Character.AI has made it clear they’re open to partnering with rightsholders to bring their characters to their chatbots legally.
While characters like Elsa, Darth Vader, and Mickey Mouse disappeared, other Disney-owned figures like Hannah Montana and Percy Jackson could still be found on the platform as of early October 2025. Character.AI did mention in a statement that its catalog is massive and mostly user-generated. Full removal will take time. They’re probably combing through their services, making sure there are no characters that can be traced back to Disney.
Is a Lawsuit on the Horizon?
Is Disney’s cease and desist letter a sign that a lawsuit might be coming? The letter did state that if Character.AI doesn’t provide written notification they’re complying, Disney will take “all necessary means” to protect its IP. A subtle threat that also fits a pattern.
Disney has already sued AI companies like Midjourney and MiniMax over unauthorized use of its characters. A lawsuit against Character.AI wouldn’t be out of place.
Character.AI’s problems don’t end with Disney. The company is already facing a wrongful death lawsuit from the family of a teenager. He died by suicide after interacting with a bot modeled on Daenerys Targaryen from Game of Thrones. With that case still pending, more companies may decide they don’t want their IP tangled up in such high-risk territory.
Disney’s cease and desist letter is sending a message. Entertainment companies will no longer allow AI platforms to use their creations for their chatbots. For Character.AI, this could be just the start of more legal trouble in the future.
The fight between copyright law and generative AI isn’t slowing down anytime soon. It’s another chapter in this complicated journey we’re on as AI chatbots continue to dominate.
