OpenAI Barred From Using “Cameo” Name in AI Video App Amid Trademark Ruling

A California federal court has barred OpenAI from using the name “Cameo” for its Sora AI tool, granting the celebrity-video platform Cameo a preliminary legal victory.

In a ruling finalized this past Saturday, Eumi Lee, the U.S. District Judge, determined the branding could mislead users.

This ruling makes a temporary November ban permanent, officially forbidding OpenAI from using the name ‘Cameo’ or any names that look like it.

Federal Judge Grants Preliminary Injunction

According to Reuters, U.S. District Judge Eumi Lee ruled that OpenAI’s use of “Cameo” for a feature in Sora, which allows users to create and share virtual likenesses, is likely to confuse consumers. Back in November, the court gave OpenAI a temporary ‘time-out’ from using the name. Now, the judge has issued a stronger, long-term order to keep that ban in place.

OpenAI stated it disagrees that the word “cameo” can be exclusively owned and plans to continue defending itself. Cameo CEO Steven Galanis called the ruling a critical victory for the company and its creator marketplace. The court emphasized that OpenAI’s use could cause irreparable harm to Cameo’s brand.

U.S. Court Confirms Consumer Confusion Risk

Reports from TechCrunch noted that the Northern California district court found OpenAI’s “Cameo” feature in Sora 2 could potentially confuse users.

The judge ruled that “Cameo” is a specific brand name, not just a general word used to describe a video. This supports the argument that OpenAI’s feature was stepping on the toes of the original company.

Because of this legal pressure, OpenAI has officially rebranded the feature to “Characters.” This name change is a major win for the original Cameo platform, which argued that its business relies on real people, not on generative AI.

Cameo successfully convinced the court that letting Sora create AI celebrity videos, featuring stars like Mark Cuban and Jake Paul, would blur the line between real human messages and AI-generated copies.

Why This Ruling Matters

This ruling illustrates the growing importance of trademark protection in the age of AI. Platforms like OpenAI must carefully navigate branding to avoid confusion with established services, while companies like Cameo rely on a clear identity to maintain user trust and commercial value.

This ruling follows a string of legal interventions where tech giants were forced to delete features mirroring real people. Beyond the Cameo injunction, Google recently faced a lawsuit from NPR host David Greene, alleging that NotebookLM stole his vocal identity. Just as OpenAI had to scrap its Scarlett Johansson-like voice, courts are now stripping “borrowed” human likenesses from AI models to protect individual brands.

Brand Rights Define Future AI Markets

The injunction proves that while AI can mimic human creativity, it cannot “hallucinate” over established trademarks. As Wall Street’s AI Reality Check shifts focus from raw power to profitability, brand identity has become the new “moat.” 

OpenAI’s loss suggests that in 2026, a trusted name is more valuable than the code behind it. For creators, this is a warning: building on borrowed branding is a high-risk gamble that even the biggest tech giants can no longer win.

Source: OpenAI blocked from using Cameo