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

Reviewed byNidhi Govil

60 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 1. The complaint, filed in US District Court in Los Angeles, marks the first major legal action by Hollywood studios against a generative AI company, potentially setting a precedent for future cases in the rapidly evolving field of artificial intelligence and copyright law 3.

The Allegations

Source: Mashable

Source: Mashable

The lawsuit describes Midjourney as a "bottomless pit of plagiarism" that enables users to generate what the studios call "AI slop" - personalized images of copyrighted characters 1. The studios claim that Midjourney used "bots, scrapers, streamrippers, video downloaders, and web crawlers" to download copyrighted content from the internet to train its AI model 1.

The complaint includes dozens of visual examples showing Midjourney's outputs alongside the original copyrighted characters. Users can reportedly generate high-quality, downloadable images of characters like Darth Vader, Yoda, Wall-E, Stormtroopers, Minions, and characters from How to Train Your Dragon by simply typing prompts 1 3.

Source: The Verge

Source: The Verge

Legal Implications and Fair Use Doctrine

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.

Matthew Sag, a professor of law and artificial intelligence at Emory University, believes Midjourney will have a harder time making a fair use case than previous AI defendants. He states, "It's going to be very difficult for a court or a jury to accept that it is transformative to take 1,000 pictures of Darth Vader and use them to produce even more pictures of Darth Vader" 3.

Industry Response and Potential Impact

The lawsuit has been welcomed by some in the creative industry. Ed Newton-Rex at Fairly Trained, a non-profit organization that promotes fairer training practices for AI companies, called it "a great day for creators around the world" 4.

Legal experts suggest that this case could have significant implications for the AI industry. Andres Guadamuz from the University of Sussex believes that this lawsuit is a message to larger AI players to implement stronger filters or face similar legal challenges 4.

Midjourney's Position and Industry Practices

Source: PC Magazine

Source: PC Magazine

Midjourney, like many other generative AI startups, trained its tools by scraping the internet to create large datasets of images, rather than seeking out specific licenses. In a 2022 interview, CEO David Holz openly discussed this process, stating, "It's just a big scrape of the internet. We use the open data sets that are published and train across those" 3.

The Road Ahead

As the case unfolds, it will likely have far-reaching implications for the AI industry, copyright law, and the future of creative work. Disney's general counsel, Horacio Gutierrez, 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.

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