Good morning. Today, you respond to OpenAI’s hope that marketers will set their IP free; critics count the wheels on Coca-Cola’s AI-generated delivery trucks; and advertising Extra Value Meals gives McDonald’s a lift.

Yesterday I asked whether marketers should embrace “free-range IP,” as I called OpenAI’s vision of trademarked characters approved for consumer use in AI videos. Ronald McDonald has already appeared in clips generated on Sora 2 and without McDonald’s permission—for example talking with police on a domestic violence call. Those are gone from Sora 2 but remain easy to find on platforms like TikTok.

Sora 2 now requires copyright holders to opt in to the use of their protected characters. OpenAI hopes marketers will do just that, as Patrick Coffee reported for CMO Today, with optional settings to keep their mascots out of violent or political content. You had firm replies, but not a consensus:

• The history of IP rights holders and digital technology is one thread: First they litigate, then they resist, eventually they realize there’s no stopping the remix culture. The music and movie industries have been there before, and now their IP is available for anyone to use as a soundtrack on Meta or be edited by clippers on TikTok. Marketers will come to the same conclusion, if they cannot resist it they might as well lead it, set some brand safety parameters in passing, and more importantly monetize it. A brand belongs to its audiences more than to the CMO. —Anthony Hamelle, chief innovation officer at TBWA\Chiat\Day NY
• Surely this is an OpenAI fantasy. Lacking control of each and every use of a brand character is a recipe for devaluation of the character and the brand. —Harry Fisher, associate professor of business administration at Eureka College
• Fans and creators have been using unlicensed brand IP since the beginning of the internet. Brands should work with OpenAI to design the right policies that balance brand safety, revenue and consumer engagement. It won’t be easy, but YouTube is a decent example of a company that has managed to work with industry and creators to build a platform that supports everyone. —Karina Kogan, board member at Advanced Inhalation Rituals
• No marketer in her/his right mind would allow free use of a brand, IP or identifying trademarks. The Ronald McDonald example proves my point; I’m sure there were people on stretchers after hearing about that Sora use. —Gregg Gannon, president and founder of The Last Ad
• The hardest thing for brands to do today, particularly with Gen Z and Gen Alpha, is to show up authentically and not be the digital representation of that Steve Buscemi fellow kids meme. Free-range IP allows brands to create a literal army of content creators who will use the brand in ways that their peers crave. —Layton Lassiter, co-founder of PR agency Gray Wolf

What are we missing? For anyone with more to say, we’re opening comments on Patrick’s article.

Coca-Cola will be disappointed if it hoped its second attempt at AI-generated holiday ads would escape controversy, Katie Deighton writes in a newsletter-only update to her story on Monday:

Much like last year, critics have accused the multibillion-dollar soda giant of turning its back on commercial artists to use lower-cost, lower-quality tech.

A fair number of commenters shared my take that Coke’s new creative looked less strange or uncanny than last year. “I didn’t really want to like it, but I did,” wrote consultant and occasional social-media provocateur Tom Goodwin.

But others felt differently. “There’s no consistent style, switching between attempted realism and a bug-eyed toony look,” Jess Weatherbed wrote at tech news site The Verge. The headline branded the push “a sloppy eyesore.”

Eagle-eyed LinkedIn poster Dino Burbidge was so rattled by how the ads’ red trucks seem to fluctuate in size and wheel count that he shared a handy chart of the changes and corresponding time stamps. “The truck is the main character!” he wrote. “Come on Coca-Cola, you can do better than this.”

And a post on X claimed that Coke said one ad “used even fewer people to make it” than last year, triggering thousands of mostly negative comments.

Coke doesn’t appear to have said that. And for what it’s worth, the company told me that the total number of people who worked on the campaign across its bespoke WPP creative agency, its in-house team and two AI studios was on par with pre-AI staffing for holiday campaigns.

AI’s evolution has allowed Coke to improve its ads, said Pratik Thakar, Coke’s global vice president and head of generative AI. “Last year’s film performed exceptionally well and was a success with customers,” he said Tuesday, “which is what matters most to us.”

McDonald’s said its value meals and new products are helping to revive sales in a tough stretch for fast-food chains, Heather Haddon reports.

U.S. same-store sales increased 2.4% in the third quarter, McDonald’s said, more than analysts expected.

Higher checks drove the boost in the U.S. “We’re fueling momentum by delivering everyday value and affordability,” CEO Chris Kempczinski said.

To win back cash-strapped consumers, McDonald’s in September resumed advertising Extra Value Meals, and is running $5 and $8 combo-meal promotions for limited periods. This summer, the chain brought back Snack Wraps, pricing them at $2.99.

A similar story in casual dining: The CEO of IHOP and Applebee’s owner Dine Brands Global said sales grew as a result of its value offerings, new menu items and increased marketing. [WSJ] 

And a different kind of challenge for fast food: The coming end of penny production has Burger King franchises stockpiling the coins so they can keep making change for their many cash customers. [WSJ]

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Why Fear of God, the cult-favorite menswear brand, is making a women’s collection. [WSJ. Magazine]

President Trump’s interview on “60 Minutes” drew 14 million viewers, its biggest audience since Jan. 10, 2021. [Deadline]

The Trump administration is negotiating a deal that would allow the lowest doses of some GLP-1 obesity drugs to be sold to consumers at $149 a month via TrumpRx. [WSJ]

Amazon sent Perplexity a cease-and-desist letter demanding that the AI company stop letting its browser agent Comet buy things for users. Perplexity said Amazon is partly trying to protect the revenue it generates by showing ads to human shoppers. [Bloomberg] 

Publicis Groupe won media planning and buying duties for Magnum Ice Cream Co., the unit being spun out of Unilever to own Ben & Jerry’s, Magnum and other brands. [Adweek]

Women’s workwear brand M.M.LaFleur is increasing its attention to LinkedIn, including tracing sales back to the platform. [Modern Retail] 

Do consumers really want AI-powered styling and shopping apps? [Glossy]

Anomaly co-founder Jason DeLand has left the agency, saying he may look into investing or other opportunities outside the ad industry. [Ad Age]