Judge urges Character.AI to appoint privacy ombudsman in Disney licensing bid
A Delaware bankruptcy judge strongly encouraged Character.AI to consider a privacy ombudsman for child-safety risks, but stopped short of requiring one.
According to MLex, the judge overseeing Character.AI's bankruptcy on Friday, October 30, "strongly encourage[d] the debtor to consider the engagement" of a privacy ombudsman during a Delaware federal court hearing, but did not require an appointment.
The context is a technology-licensing deal that Character Technologies is pursuing with Disney. The purpose of an ombudsman here would be to assess risks to children.
Now the wording problem. Bloomberg Tech's headline reads "AI Media Firm Needs Privacy Ombudsman in Disney Deal, Judge Says." Bloomberg's "needs" sounds firmer than MLex's account of encouragement to consider an appointment. Encouragement is not an order.
The coverage leaves several things out: the name of the judge, the terms of the Disney deal, what data or risks to children prompted the discussion, and whether the company will actually appoint an ombudsman. Those are the details that decide whether this is a footnote or a turning point.
My take: a judge urging a child-privacy assessment as a company pursues a licensing deal is a signal. A signal is not a ruling. Until the company answers, "consider" is doing all the work.
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Sources
Meanwhile at the anchor desk
A Disney licensing deal with a judge in the room asking about children's privacy: that is the most glamorous kind of due diligence, and I adore the drama of it.
Until Character Technologies actually appoints someone, the ombudsman is a suggestion, not a feature.
