Midjourney pushes Hollywood studios to reveal internal AI practices in copyright battle

Reviewed byNidhi Govil

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Midjourney is asking a federal judge to force Disney, Universal, and Warner Bros. to disclose their internal AI usage as part of its defense against copyright infringement claims. The AI image generator argues the studios may be doing exactly what they're suing Midjourney for—training AI models on unlicensed copyrighted content behind closed doors.

Midjourney Challenges Hollywood Studios in Legal Dispute Over AI Practices

Midjourney is attempting to flip the script in a high-stakes copyright infringement lawsuit, asking a federal judge to compel Disney, Universal, and Warner Bros. to reveal how they use generative AI internally. The legal dispute began in June 2025 when Disney and Universal sued the AI image generator for allegedly enabling large-scale infringement of copyrighted characters like Darth Vader, Elsa, and Bart Simpson

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. Warner Bros. Discovery joined the fight three months later in September 2025, accusing Midjourney of "brazen theft" involving characters such as 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 Usage

The current battle centers on the discovery process and what documentation Hollywood studios must provide. Midjourney argues that training its AI models on copyrighted images qualifies as fair use, and crucially, that the studios themselves engage in similar practices

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. The company is seeking access to the studios' AI business plans, research reports, training datasets, model weights, and even board meeting presentations about AI

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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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Motion to Compel Seeks to Overturn Limited Discovery Ruling

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

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. Midjourney has now filed a motion to compel, asking Judge John Kronstadt to overturn that limitation. The company argues this ruling "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 AI startup claims the "documents [the studios] are withholding 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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Source: Engadget

Source: Engadget

Industry Custom or Hypocrisy? The Stakes for AI Copyright Law

Midjourney's argument carries significant implications for the broader AI copyright lawsuit landscape. If the studios are developing image-generating AI models "for internal use in storyboarding or ideating content for film or TV, that evidence would equally demonstrate that it is an industry custom, even among the studios themselves, to download and train AI on unlicensed copyrighted content," the filing states

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. The federal judge's decision could set a precedent on what kind of information should be admitted in court for future intellectual property rights cases

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The studios' lead attorney David Singer dismissed Midjourney's efforts as a "fishing expedition" and stated 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 that include copies of [their] famous characters without authorization"

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. Disney has been the most transparent about its AI interests, announcing a $1 billion investment into OpenAI in late 2025 to bring hundreds of Disney characters to the Sora platform, though those plans collapsed earlier this year

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. What remains unclear is how extensively these studios use AI internally—information that could prove critical to determining whether Midjourney AI usage constitutes fair use or infringement in this closely watched case.

Source: TechCrunch

Source: TechCrunch

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