Disney and Universal Sue Midjourney for AI-Generated Character Copyright Infringement

Reviewed byNidhi Govil

57 Sources

Disney and NBCUniversal have filed a landmark lawsuit against AI image-synthesis company Midjourney, accusing it of copyright infringement for allowing users to create images of copyrighted characters like Darth Vader and Shrek.

Hollywood Giants Take Legal Action Against AI Image Generator

In a groundbreaking move, Disney and NBCUniversal have filed a lawsuit against Midjourney, a San Francisco-based AI image-synthesis company, accusing it of copyright infringement. The lawsuit, filed in the US District Court in Los Angeles, marks the first major legal action by Hollywood studios against a generative AI company 1.

The Allegations

Source: The Verge

Source: The Verge

The entertainment conglomerates describe Midjourney as a "bottomless pit of plagiarism" that enables users to generate what they call "AI slop" - personalized images of copyrighted characters 1. The complaint includes dozens of visual examples showing Midjourney's outputs alongside the original copyrighted characters, demonstrating how users can create images of iconic characters like Darth Vader, Yoda, Wall-E, Stormtroopers, Minions, and characters from How to Train Your Dragon 3.

Training Data and Copyright Concerns

The studios claim that Midjourney downloaded copyrighted content from the internet using "bots, scrapers, streamrippers, video downloaders, and web crawlers" to train its AI model 1. This allegation is supported by Midjourney CEO David Holz's 2022 interview with Forbes, where he openly discussed the process of scraping the internet to create large datasets of images for training 3.

Legal Implications and Fair Use Doctrine

Source: NPR

Source: NPR

IP lawyer Chad Hummel sees the compilation of images in the complaint as compelling evidence that "the output is not sufficiently transformative" 3. This could make it difficult for Midjourney to argue for protection under the "fair use" doctrine, which allows for use of copyrighted works in certain circumstances.

Potential Impact on AI Industry

Legal experts suggest that this lawsuit could have far-reaching consequences for the AI industry. Andres Guadamuz from the University of Sussex believes that Disney's involvement sends a message to larger AI players to implement stronger filters or face similar legal action 4.

Disney's Stance on AI

Source: Economic Times

Source: Economic Times

Despite the lawsuit, Disney maintains a cautiously optimistic view of AI technology. Horacio Gutierrez, Disney's general counsel, stated, "We are bullish on the promise of AI technology and optimistic about how it can be used responsibly as a tool to further human creativity. But piracy is piracy, and the fact that it's done by an AI company does not make it any less infringing" 5.

Broader Context of AI and Copyright

This lawsuit is part of a larger trend of legal battles over AI copyright infringement. Other cases include a class action lawsuit by visual artists against Midjourney in 2023 and lawsuits by book publishers and news agencies against various AI firms 3. The outcome of this case could set a significant precedent for the future of AI and copyright law.

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