SAN FRANCISCO — A U.S. federal district court in Northern California issued a decisive ruling on Saturday, Feb. 17, 2026, granting a permanent injunction that bars OpenAI from using the “Cameo” name in any of its products, including the AI‑generated video platform Sora. The decision follows a trademark infringement lawsuit filed by Cameo, the marketplace for personalized video messages from celebrities and creators.
Breaking News
At 02:30 PM PT, Judge Eleanor M. Lee of the United States District Court for the Northern District of California entered a final judgment that enforces the earlier temporary restraining order (TRO) issued in November 2025. The court concluded that OpenAI’s use of “Cameo” for its Sora feature is likely to cause consumer confusion and that the term is not merely descriptive of the technology.
OpenAI has since renamed the feature “Characters,” a change reflected in the company’s product documentation and user interface as of Feb. 18, 2026.
Key Details
Who: OpenAI, the creator of ChatGPT and the generative‑AI video tool Sora; Cameo, a platform for custom video messages.
What: A permanent injunction prohibiting OpenAI from using the “Cameo” trademark in any product name, marketing material, or user interface.
When: Judgment entered on Feb. 17, 2026; injunction effective immediately.
Where: United States District Court, Northern District of California, San Francisco Division.
Why: The court found that OpenAI’s use of the term is likely to cause confusion with Cameo’s established brand, violating the Lanham Act.
How: The ruling follows a multi‑month litigation process that began when Cameo filed a complaint alleging trademark infringement and unfair competition in August 2025.
Background
Cameo, founded in 2017, built a $1.2 billion business by enabling fans to purchase personalized video greetings from public figures. The company holds a registered trademark for the word “Cameo” in connection with video services, entertainment, and online platforms (U.S. Trademark Reg. No. 8732191).
OpenAI launched Sora, an AI‑driven video generation tool, in late 2024. In early 2025, the company introduced a feature that allowed users to insert a digital likeness of themselves into generated videos, labeling the option “Cameo” within the app. OpenAI argued the term was descriptive of a brief appearance, akin to a cameo role in film.
Trademark experts, however, note that descriptiveness is a narrow defense. “A term is merely descriptive only if it conveys the essential characteristics of the product without suggesting a source,” said Laura Chen, professor of intellectual property law at Stanford University. “The court correctly observed that ‘Cameo’ suggests a brand source, not just a brief appearance.”
In November 2025, the court granted a TRO, temporarily halting OpenAI’s use of the name while the case proceeded. OpenAI complied by rebranding the feature to “Characters” in its beta release, but the company continued to reference “Cameo” in internal documentation, prompting the permanent injunction.
Expert Analysis
Legal analysts see the ruling as a landmark for tech companies navigating trademark law. “Big‑tech firms often assume that generic or descriptive terms are safe, but this case underscores the importance of thorough trademark clearance,” said Michael Alvarez, partner at the law firm Perkins Coie, who represented Cameo.
OpenAI’s spokesperson, Jenna Patel, issued a brief statement: “We respect the court’s decision and have already updated our product naming to comply. Our focus remains on delivering innovative AI tools while honoring the intellectual property rights of our partners.”
Industry observers also note the broader implications for AI‑generated content platforms. As AI tools become more capable of mimicking real‑world personalities, the line between descriptive terminology and brand infringement may blur. “Companies must anticipate not only copyright issues but also trademark concerns when naming AI features,” warned Sarah Liu, senior analyst at Forrester Research.
Impact & Implications
The injunction forces OpenAI to re‑engineer parts of Sora’s user experience. Developers must replace all references to “Cameo” in code, documentation, marketing, and help articles. The change may also affect third‑party integrations that rely on the original API naming conventions.
For Cameo, the ruling protects its brand equity and reinforces its market position. The company announced plans to expand its creator marketplace, leveraging the legal victory as a marketing point.
From a regulatory perspective, the case highlights the growing intersection of AI innovation and existing intellectual‑property frameworks. The Federal Trade Commission (FTC) has indicated interest in monitoring AI‑driven branding practices to prevent consumer deception.
What’s Next
OpenAI has filed an appeal with the Ninth Circuit Court of Appeals, citing procedural arguments about the scope of the injunction. The appeal filing deadline is March 31, 2026.
Cameo is expected to file a motion for attorney’s fees, a common request in trademark cases where the plaintiff prevails.
Both companies have scheduled a joint press conference for April 5, 2026, to discuss the transition and potential collaborations.
FAQ
Q1: Does the ruling affect existing Sora users who have already used the “Cameo” feature?
Yes. Existing videos remain unchanged, but users can no longer create new videos using the “Cameo” option. OpenAI will offer a migration tool to rename saved projects to the new “Characters” terminology.
Q2: Can OpenAI still use the word “cameo” in a purely descriptive sense?
The court’s order specifically bars any use that could be interpreted as a brand identifier. Purely descriptive usage in a non‑branding context may be permissible, but OpenAI is advised to avoid the term altogether to mitigate risk.
Q3: What does this mean for other AI companies using similar naming conventions?
Companies should conduct comprehensive trademark searches and consider potential brand confusion before adopting familiar industry terms. Legal counsel is recommended for any naming that could intersect with existing trademarks.
Q4: Will the injunction impact OpenAI’s other products, such as ChatGPT or DALL‑E?
No. The injunction is limited to the “Cameo” name as used in Sora. Other products are unaffected unless they incorporate the same terminology.
Summary
The Northern District of California has issued a permanent injunction that prohibits OpenAI from using the “Cameo” name in its Sora video‑generation platform, citing likely consumer confusion with Cameo’s trademarked brand. OpenAI has renamed the feature “Characters” and is appealing the decision. The ruling reinforces trademark protections for established brands in the rapidly evolving AI landscape and signals to tech firms the necessity of rigorous naming vetting processes.
Related Developments
- Nov. 2025: Court grants temporary restraining order against OpenAI (Reuters).
- Jan. 2026: OpenAI updates Sora UI to replace “Cameo” with “Characters” (TechCrunch).
- Feb. 2026: FTC releases draft guidance on AI‑driven branding and consumer deception (FTC Press Release).
- Mar. 2026: Ninth Circuit schedules oral arguments for OpenAI appeal (Law360).
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