Disney and Universal File Lawsuit Against Midjourney Over Alleged AI-Generated Copyright Infringement

Two of Hollywood’s biggest studios, Disney and Universal, have launched a lawsuit against artificial intelligence firm Midjourney, accusing it of generating unauthorised images of iconic characters such as Darth Vader, Elsa, and the Minions.

Filed in a federal court in Los Angeles, the lawsuit claims that Midjourney’s AI image generator is routinely creating what the studios describe as “endless” reproductions of copyrighted characters. These include figures from popular franchises like Star Wars, Frozen, Despicable Me, and Marvel’s Spider-Man and Iron Man.

Midjourney allows users to create digital art by typing descriptive prompts into its system. But according to the studios, this tool is being used to replicate well-known characters without permission, raising significant concerns about intellectual property rights in the age of generative AI.

“Piracy is still piracy, even when committed by artificial intelligence,” said Disney’s top legal executive Horacio Gutierrez, who added that the company is hopeful about AI’s potential when used responsibly.

In their complaint, Disney and Universal revealed that Midjourney earned approximately $300 million in revenue last year and is reportedly developing a new video generation platform. The studios argue that the startup is profiting from what amounts to widespread copyright infringement.

Legal experts say the case touches on unresolved issues at the intersection of creativity, technology, and intellectual property law. Syracuse University law professor Shubha Ghosh noted that many of the AI-generated images appear to closely mimic existing characters without significantly altering or transforming them. “They’re often just copies in new settings,” he said.

Others, like Randy McCarthy from law firm Hall Estill, caution that the case is far from clear-cut. “Disney and Universal may have a strong argument, but there are complex elements to consider – like Midjourney’s terms of service and the legal concept of fair use,” he said.

Midjourney, which is based in San Francisco, has not issued a public response to the lawsuit. The company describes itself as a small, independent research lab with fewer than a dozen full-time staff. Its founder, David Holz, previously led the tech startup Leap Motion.

The legal challenge highlights the entertainment industry’s ongoing struggle to navigate the growing influence of AI. While studios increasingly rely on the technology for tasks like voice editing and digital effects – two recent Oscar-nominated films used AI to alter voices – many are also wary of how generative tools might undermine creative ownership.

The lawsuit could set a precedent for how courts treat AI-generated content and its impact on copyrighted material, as Hollywood continues to balance innovation with the protection of its most valuable assets.