Analysis of Liability When AI Inputs and Outputs Hinge on Copyright Violations: A Case Study of the Studio Ghibli Trend

Artificial Intelligence is now in direct competition with human creativity. Artistic expression is one of the defining elements of what makes us human. When OpenAI’s GPT-4o model began converting images into Studio Ghibli-style characters, many ethical and legal questions arose. In this analytical essay, this problem has been analysed using copyright infringement standards from the United States and India, as well as the recent amendments to the Japanese Copyright Act, 1970. The analysis follows a qualitative study of the Studio Ghibli controversy to understand whether current legal systems are prioritising artificial intelligence over the copyright-protected work of artists. Japan, a country famous for its anime and manga comics, films and books, has shown an AI-friendly approach by allowing text and data mining (TDM) for Gen AI training. Along with that, the Berne Convention is very clear about reproduction or modification in any form of copyright-protected works. What this tells us is that policymakers have a long way to go when it comes to protecting artistic integrity. Since artistic style cannot be protected under current copyright laws around the world, the burden of taking extra care to maintain control over creative work is put on artists themselves even after obtaining copyright.