Disney, Universal seek $150K per image in new AI lawsuit


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Summary

Copyright infringement lawsuit

Disney and Universal have filed a lawsuit against Midjourney, alleging that the AI company used copyrighted content without permission to train its image-generation tools.

Legal risks for AI companies

This lawsuit represents the first legal action from major Hollywood studios against AI firms over alleged misuse of copyrighted works.

AI companies’ legal defense

AI companies are defending themselves in court by citing creative freedom and fair use.


Full story

Two of the biggest names in entertainment are suing an artificial intelligence company for alleged copyright infringement. Disney and Universal filed a lawsuit Wednesday against Midjourney, claiming the AI firm used copyrighted content without permission to train its image-generation tools.

Midjourney is well-known in the AI image-generation space, with approximately 20 million users, and, according to the lawsuit, generated $300 million in revenue last year.

Lawsuit filed

The 110-page suit was officially filed Wednesday, June 11, in a U.S. district court in Los Angeles. The suit seeks unspecified damages from Midjourney and aims to prevent the company from launching an upcoming video service.

The suit includes detailed supplemental materials from the plaintiffs, including several visual examples of the alleged infringement.

Disney and Universal asked for damages, including up to $150,000 per infringed work. That could get pricey for Midjourney. According to the filing, Midjourney offered dozens of copyrighted images from well-known franchises, including Toy Story, Marvel and The Simpsons, for users to select.

The lawsuit says Disney and Universal asked Midjourney to adopt technological measures to prevent its image generators from producing infringing materials, but the company ignored their demands.

Midjourney has yet to comment publicly on the lawsuit.

AI lawsuits

The legal filing marks the first time major Hollywood players have gotten involved in lawsuits against AI companies. Recent legal challenges targeting AI companies over alleged misuse of copyrighted works include a lawsuit by The New York Times against OpenAI and Microsoft in 2023.

On June 9, Getty Images filed a similar lawsuit against Stability AI, alleging the company used the visual media outlet’s images without permission to train its models.

The AI companies are fighting back in court, with many of them citing creative freedom. Fair use laws allow for the use of a copyrighted image if it’s turned into something with a new meaning or message. It also permits the use of copyrighted works in journalism, education or research. 

The companies are also pushing back through governmental policy. In January, OpenAI sent a memo to the White House with recommendations on strengthening America’s AI leadership.

OpenAI argued in the memo that the federal government should preserve American AI models’ ability to learn from copyrighted material.

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Why this story matters

Disney and Universal's lawsuit against Midjourney highlights growing legal and ethical challenges over how artificial intelligence companies use copyrighted materials to train their models.

Copyright and intellectual property

The lawsuit raises questions about how AI companies obtain and use copyrighted works, potentially setting legal precedents for intellectual property rights in the AI industry.

AI regulation and policy

As established companies and government bodies respond to the rapid development of AI, this case underscores ongoing debates over what legal boundaries should apply to AI-generated content.

Industry impact

The involvement of major Hollywood studios signals a new phase of litigation that could influence the practices and business models of AI firms and reshape relationships between technology and creative sectors.

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History lesson

The current lawsuit is reminiscent of past entertainment industry efforts to control new technologies, such as the VCR and digital music copying. Historically, similar copyright battles have sometimes resulted in settlements or licensing arrangements that subsequently shaped how content is distributed and monetized in evolving technological landscapes.

Oppo research

AI industry advocates argue that lawsuits like this could stifle innovation. According to the Chamber of Progress, requiring explicit licensing could inhibit the development of increasingly sophisticated AI models. Tech leaders propose that new licensing frameworks or clearer fair use standards are preferable to outright legal bans on training data.

Policy impact

A ruling in favor of Disney and Universal could set a precedent requiring AI firms to secure licenses for copyrighted materials. This may increase operational costs for AI companies and could prompt changes in platform functionality, potentially limiting users’ ability to generate images featuring protected content and affecting the economic model of AI-driven creative tools.

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