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In what appears to be Hollywood’s first copyright infringement battle against a generative AI company, Disney (NYSE:DIS) and NBCUniversal (NASDAQ:CMCSA) have jointly filed a lawsuit against Midjourney.
The suit alleges that the AI startup has infringed Disney IP by generating high-quality images of characters like Deadpool, Wolverine, Iron Man, Spider-Man, the Hulk, and more from the Marvel franchise; characters from Star Wars like Darth Vader, Yoda, R2-D2, C-3PO, and Chewbacca; and Universal IP like “Shrek” and “Minions,” to name a few.
The lawsuit states that Midjourney could have rejected user prompts that request the display or download of copyrighted characters and could have used its available technology to screen for infringing image outputs but did not do so.
“By helping itself to Plaintiffs’ copyrighted works and then distributing images (and soon videos) that blatantly incorporate and copy Disney’s and Universal’s famous characters—without investing a penny in their creation—Midjourney is the quintessential copyright free-rider and a bottomless pit of plagiarism,” Disney and NBCU said in their 110-page lawsuit, which was filed on Tuesday.
“Midjourney’s bootlegging business model and defiance of U.S. copyright law are not only an attack on Disney, Universal, and the hard-working creative community that brings the magic of movies to life, but are also a broader threat to the American motion picture industry, which has created millions of jobs and contributed more than $260 billion to the nation’s economy,” the lawsuit said.
Last year, Disney had sent Midjourney a “cease and desist” order, which the AI firm received and acknowledged but did not respond to. Universal also sent a similar notice last month but did not hear back from them.
Disney and Universal are seeking unspecified damages from Midjourney, which made $300M in 2024. The AI company was founded about three years ago in San Francisco, California, by David Holz, a former NASA researcher.
The suit was filed in the U.S. District Court for the Central District of California in L.A.