Hollywood giants sue AI firm over ‘piracy’

Hollywood giants Disney and Universal have filed a joint lawsuit against artificial intelligence firm Midjourney, accusing it of large-scale copyright infringement.

The complaint, filed on Wednesday in the US District Court in Los Angeles, alleges that the AI image generator illegally used the studios’ copyrighted works to train its software and create unauthorized reproductions of iconic characters.

According to the 110-page complaint, Midjourney used “countless” copyrighted works from both studios without permission. The San Francisco-based company, founded in 2021, earned $300 million in subscription revenue last year, the lawsuit said.

The studios described Midjourney as “the quintessential copyright free-rider and a bottomless pit of plagiarism.” The lawsuit claims the company’s AI models reproduced characters from franchises including Star Wars, Marvel, The Simpsons, Shrek, Minions, Kung Fu Panda, and How to Train Your Dragon.

The plaintiffs said Midjourney ignored multiple cease-and-desist letters and requests to implement safeguards. Instead, the company released updated versions of its tool capable of generating higher-quality images, and is preparing to launch an AI-driven video service that is allegedly being trained on copyrighted material without authorization.

“Midjourney could easily stop its theft and exploitation,” the studios wrote, but has instead continued its “bootlegging” business practices in defiance of US copyright law. The lawsuit stresses that only the studios have the right to commercialize their characters, whether through merchandise, video games, or subscription services.

“We are bullish on the promise of AI technology and optimistic about how it can be used responsibly... but piracy is piracy,” Disney’s chief legal officer Horacio Gutierrez said. NBCUniversal’s general counsel, Kim Harris, said the company is suing to protect artists and its substantial investment in content.

The studios are seeking a preliminary injunction to stop Midjourney from copying their works and launching its video service without proper copyright protections. They also are also seeking damages, though no specific figure has been listed.

Midjourney has not responded to media requests for comment. Similar lawsuits have been filed against other AI startups that train models using data from the internet. The New York Times sued OpenAI and Microsoft for copyright infringement in 2023. Last year, Sony Music, Universal Music Group, and Warner Records filed lawsuits against AI music generators over unauthorized use of recordings. However, Disney and Universal are the first major Hollywood studios to sue an AI firm for copyright infringement.