Midjourney demands Hollywood studios reveal AI practices in copyright infringement battle

Reviewed byNidhi Govil

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Midjourney is pushing back against Disney, Universal, and Warner Bros. in an ongoing copyright lawsuit by asking a federal judge to force the studios to disclose their internal AI usage. The AI startup argues that if the studios are training models on copyrighted content themselves, it strengthens its fair use defense and exposes potential hypocrisy in their claims.

Midjourney Challenges Studios to Disclose Internal AI Practices

Midjourney is attempting to flip the script in a high-stakes legal dispute with three major Hollywood studios, asking a federal judge to compel Disney, Universal, and Warner Bros. Discovery to reveal how they use generative AI internally

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. The AI image generation company faces copyright infringement allegations from all three studios, which sued the startup between June and September 2025 for enabling unauthorized recreations of their copyrighted characters

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. Disney and Universal's original complaint described Midjourney as a "bottomless pit of plagiarism" for generating images of characters like Darth Vader, Elsa, and Bart Simpson, while Warner Bros. accused the company of "brazen theft" involving Superman, Batman, and Bugs Bunny, seeking $150,000 per infringed work

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Source: Mashable

Source: Mashable

Fair Use Defense Hinges on Studios' Own AI Practices

The current litigation centers on what the studios must produce during the discovery process. Midjourney is specifically requesting access to the Hollywood studios' AI business plans, research reports, training datasets, model weights, and even board meeting presentations about AI technologies

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. The startup's fair use defense rests on a provocative argument: if Disney Universal Warner Bros are training their own AI models on copyrighted works without licenses, it demonstrates an industry custom that undermines their lawsuit

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. "If Plaintiffs are doing the very thing they seek to punish, that evidence goes to the heart of Midjourney's fair use and unclean hands defenses," wrote Midjourney attorney Bobby Ghajar

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Judge Limits Disclosure, Midjourney Appeals

A magistrate judge ruled in mid-June 2026 that the studios would only need to provide information about consumer-facing AI applications, not internal tools or systems

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. Midjourney is now asking Judge John Kronstadt to overturn that limitation, arguing it "unfairly" allows the studios "to cherry-pick only those documents they believe support their market harm claims while depriving Midjourney of documents that would support its defenses"

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. The startup claims the documents being withheld are "precisely those that would reveal whether, behind closed doors, they are doing exactly what they are suing Midjourney for doing"

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. For instance, if the studios are developing image-generating models for internal use in storyboarding or ideating content, that would demonstrate they too train AI on unlicensed content

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Source: TechCrunch

Source: TechCrunch

Broader Implications for AI Copyright Battles

The studios' lead attorney David Singer has dismissed Midjourney AI usage discovery requests as a fishing expedition, stating that the studios "do not seek to stop AI technology or even shut down Midjourney's business," but rather "simply want Midjourney to stop copying their movies and TV shows and to stop distributing, publicly displaying, publicly performing, and creating derivative works" without authorization

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. The federal judge's decision could set a significant precedent for future AI copyright lawsuit cases, determining what kind of information about internal AI practices should be admitted in court

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. Disney's $1 billion investment into OpenAI announced in late 2025, which aimed to bring "hundreds" of Disney characters to the Sora platform before it shut down earlier this year, demonstrates the studios' active engagement with AI technologies

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. How this legal battle resolves may influence whether Hollywood can maintain intellectual property rights claims while simultaneously developing their own AI tools trained on similar data, potentially reshaping the boundaries of acceptable AI practices across the entertainment industry.

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