Hollywood Giants Sue Chinese AI Startup MiniMax for Copyright Infringement

Reviewed byNidhi Govil

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Disney, Universal, and Warner Bros. Discovery have filed a joint lawsuit against Chinese AI company MiniMax, alleging massive copyright infringement through its Hailuo AI app. The case highlights growing tensions between AI innovation and intellectual property rights in the entertainment industry.

Hollywood Studios Take Legal Action Against Chinese AI Startup

In a significant move that underscores the growing tension between artificial intelligence (AI) innovation and intellectual property rights, major Hollywood studios Walt Disney Co., Comcast Corp.'s Universal Studios, and Warner Bros. Discovery Inc. have jointly filed a lawsuit against Chinese AI startup MiniMax

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. The lawsuit, filed in the U.S. District Court for the Central District of California, accuses MiniMax of "willful and brazen" copyright infringement through its popular AI-powered video and image generation app, Hailuo AI

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Source: Axios

Source: Axios

The Allegations

The studios claim that MiniMax's Hailuo AI, marketed as a "Hollywood studio in your pocket," allows users to generate high-quality, downloadable images and videos of copyrighted characters with simple text prompts

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. The lawsuit includes screenshots of MiniMax advertisements featuring well-known characters such as Disney's Darth Vader and Universal's Minions, all bearing MiniMax Hailuo branding

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Source: The Hollywood Reporter

Source: The Hollywood Reporter

The plaintiffs argue that MiniMax not only failed to implement reasonable measures to avoid infringement but actively encouraged it by disregarding U.S. copyright law and treating valuable copyrighted characters as its own

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. They allege that MiniMax's actions pose a significant threat to the U.S. motion picture industry, which has created millions of jobs and contributed over $260 billion to the nation's economy

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MiniMax and the AI Landscape

Founded in 2021, Shanghai-based MiniMax is considered one of China's "AI Dragons" and is valued at approximately $3 billion

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. The company has received funding from major Chinese tech giants like Alibaba and Tencent and is reportedly planning to list in Hong Kong with a valuation of more than $4 billion

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Broader Implications for AI and Copyright

This lawsuit is part of a growing trend of legal actions taken by content creators against AI companies. Earlier this year, Disney and Universal sued Midjourney, another AI image generator, for similar copyright infringement claims

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. The case against MiniMax is particularly significant as it's the first of its kind against a Chinese AI company and demonstrates how far U.S. movie studios are willing to go to protect their intellectual property in the AI era

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Source: Reuters

Source: Reuters

Industry Response and Future Outlook

The studios have emphasized their support for responsible AI innovation while stressing the need to protect creators' rights. In a joint statement, they said, "A responsible approach to AI innovation is critical, and today's lawsuit against MiniMax again demonstrates our shared commitment to holding accountable those who violate copyright laws, wherever they may be based"

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As AI technology continues to advance, this case highlights the complex challenges facing the entertainment industry in balancing innovation with intellectual property protection. The outcome of this lawsuit could have far-reaching implications for the future of AI-generated content and copyright law in the digital age.

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