Nazi SpongeBob, erotic chatbots: Steve Bannon and allies DEMAND copyright enforcement against AI

United States Attorney General Pam Bondi was asked by a group of conservatives to defend intellectual property and copyright laws against artificial intelligence.

A letter was directed to Bondi, as well as the the director of the Office of Science and Technology Policy, Michael Kratsios, from a group of self-described conservative and America First advocates including former Trump adviser Steve Bannon, journalist Jack Posobiec, and members of nationalist and populist organizations like the Bull Moose Project and Citizens for Renewing America.

'It is absurd to suggest that licensing copyrighted content is a financial hindrance to a $20 trillion industry.'

The letter primarily focused on the economic impact of unfettered use of IP by imaginative and generative AI programs, which are consistently churning out parody videos to mass audiences.

"Core copyright industries account for over $2 trillion in U.S. GDP, 11.6 million workers, and an average annual wage of over $140,000 per year — far above the average American wage," the letter argued. That argument also extended to revenue generated overseas, where copyright holders sell over an alleged $270 billion worth of content.

This is in conjunction with massive losses already coming through IP theft and copyright infringement, an estimated total of up to $600 billion annually, according to the FBI.

"Granting U.S. AI companies a blanket license to steal would bless our adversaries to do the same — and undermine decades of work to combat China’s economic warfare," the letter claimed.

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Letters to the administration debating the economic impact of AI are increasing. The Chamber of Progress wrote to Kratsios in October, stating that in more than 50 pending federal cases, many are accused of direct and indirect copyright infringement based on the "automated large-scale acquisition of unlicensed training data from the internet."

The letter cited the president on "winning the AI race," quoting remarks from July in which he said, "When a person reads a book or an article, you've gained great knowledge. That does not mean that you're violating copyright laws."

The conservative letter aggressively countered the idea that AI boosts valuable knowledge without abusing intellectual property, however, claiming that large corporations such as NVIDIA, Microsoft, Apple, Google, and more are well equipped to follow proper copyright rules.

"It is absurd to suggest that licensing copyrighted content is a financial hindrance to a $20 trillion industry spending hundreds of billions of dollars per year," the letter read. "AI companies enjoy virtually unlimited access to financing. In a free market, businesses pay for the inputs they need."

The conservative group further noted examples of IP theft across the web, including unlicensed productions of "SpongeBob Squarepants" and Pokemon. These include materials showcasing the beloved SpongeBob as a Nazi or Pokemon's Pikachu committing crimes.

IP will also soon be under threat from erotic content, the letter added, citing ChatGPT's recent announcement that it would start to "treat adult users like adults."

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Photo by Michael M. Santiago/Getty Images

The letter argued further that degrading American IP rights would enable China to run amok under "the same dubious 'fair use' theories" used by the Chinese to steal content and use proprietary U.S. AI models and algorithms.

AI developers, the writers insisted, should focus on applications with broad-based benefits, such as leveraging data like satellite imagery and weather reports, instead of "churning out AI slop meant to addict young users and sell their attention to advertisers."

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