The Landmark AI Copyright Battle: Disney & Universal Sue Midjourney Over Character Infringement

June 16, 2025

The landscape of artificial intelligence is rapidly evolving, and with it, the complexities surrounding intellectual property rights. A pivotal moment in this ongoing debate is the landmark lawsuit filed by major Hollywood studios, including Disney and Universal, against Midjourney, a prominent AI image-generation platform. This legal action, the first of its kind directly from major film studios against a generative AI firm, zeroes in on the unauthorized creation of copyrighted characters and the alleged use of protected works in AI training data.

The Core Allegations: Character Copyright and Training Data Infringement

The lawsuit against Midjourney centers on two primary accusations: the direct infringement of copyrighted characters and the unauthorized use of vast amounts of copyrighted material to train its AI models.  

Focus on Character Copyright and Derivative Works

Unlike previous lawsuits that might target specific works, Disney and Universal’s complaint places a strong emphasis on the copyright of their iconic characters

The studios allege that Midjourney’s platform acts as a “virtual vending machine” for “endless unauthorized copies” of their intellectual property, generating near-photorealistic images of beloved figures such as Darth Vader, the Minions, Shrek, Homer Simpson, and Spider-Man. 

A key piece of evidence presented in the lawsuit highlights Midjourney’s ability to produce recognizable characters even from generic prompts. For instance, the complaint details how a prompt like “Superhero fight scene” yielded images of Spider-Man battling another Spider-Man, and a request for a “popular ’90s animated cartoon with yellow skin” produced The Simpsons. This demonstrates the pervasive nature of the alleged infringement, where users don’t even need to explicitly name characters to obtain infringing outputs.

Allegations of Unauthorized Training Data Use

The lawsuit further asserts that Midjourney’s Image Service was developed using “innumerable unauthorized copies of Plaintiffs’ copyrighted works”. The studios claim Midjourney “pirated the libraries” of their films to train its AI engine, leading to outputs that clearly resemble direct derivatives from its training data, such as scenes from “Avengers Infinity War”.

Hollywood’s Stance on Generative AI and Intellectual Property

A landmark lawsuit has been filed by major Hollywood studios, including Disney and Universal, against Midjourney, a prominent AI image-generation platform. This legal action, the first of its kind directly from major film studios against a generative AI firm, focuses on the unauthorized creation of copyrighted characters and the alleged use of protected works in AI training data. This article quickly highlights the core allegations, Midjourney’s unique position, and the broader implications for copyright law in the age of AI.

Why Hollywood is Suing Midjourney: Character & Data Infringement

The lawsuit against Midjourney centers on two main accusations: the direct infringement of copyrighted characters and the unauthorized use of copyrighted material to train its AI models.

Disney and Universal allege that Midjourney’s platform acts as a “virtual vending machine” for “endless unauthorized copies” of their intellectual property, generating images of iconic figures like Darth Vader, the Minions, Shrek, Homer Simpson, and Spider-Man. The studios provide evidence that Midjourney can produce recognizable characters even from generic prompts, such as “Superhero fight scene” yielding Spider-Man images [User Query], or “popular ’90s animated cartoon with yellow skin” producing The Simpsons.

Furthermore, the lawsuit claims Midjourney’s Image Service was developed using “innumerable unauthorized copies of Plaintiffs’ copyrighted works” and that it “pirated the libraries” of their films, leading to outputs resembling scenes from “Avengers Infinity War”. Disney and Universal had previously sent cease and desist letters to Midjourney, which they say were ignored or inadequately addressed.

Midjourney’s Unique Stance and the Legal Stakes

Midjourney is distinctive in the generative AI space as it is self-funded and profitable through monthly subscriptions, with estimated 2024 revenues around $300 million. The studios argue this profitability is driven by demand for unlicensed, branded imagery.

Disney and Universal are seeking statutory damages of up to $150,000 per infringed work, along with preliminary and permanent injunctions to prevent Midjourney from distributing images or future video output depicting their intellectual property without robust filters and copyright protection measures.

The Broader AI Copyright Debate

This lawsuit is part of a larger, evolving legal landscape concerning AI and intellectual property.

A key debate revolves around whether using copyrighted materials to train AI models falls under “fair use.” While AI developers often argue it’s transformative, the U.S. Copyright Office and courts are scrutinizing this, especially if AI outputs are “substantially similar” to originals without a different purpose.

Another issue is the copyrightability of AI-generated content itself. The U.S. Copyright Office consistently requires “human authorship” for copyright protection, meaning AI-generated content alone cannot be copyrighted. However, human “significant creative input” in AI-assisted works might qualify for protection.

The studios’ strategic focus on character copyright leverages well-established legal precedents, making their visual evidence of infringement particularly compelling compared to more abstract arguments about AI training data.

Setting Precedent: Impact on AI and Creative Industries

The Disney/Universal lawsuit is one of over 40 copyright lawsuits against generative AI firms across various industries, including music, news, and visual arts.

The outcome of this case could set a significant precedent for both major studios and smaller creators. A ruling in favor of Disney and Universal could force AI companies to implement stricter “guardrails” to prevent infringement and encourage widespread licensing deals for copyrighted content, fundamentally reshaping the AI development and content generation landscape. This case underscores the urgent need for a sustainable and ethical AI ecosystem that balances innovation with robust protection for human creativity and intellectual property rights.

You can see the court complain filing HERE.


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Scott

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