LOS ANGELES — Major film studios Disney and Universal are taking a stand against artificial intelligence by filing a lawsuit against AI image generator Midjourney. The suit, lodged in June, accuses the company of illegally creating and distributing copies of their beloved characters, an action the studios claim undermines their intellectual property rights.
The lawsuit comes amidst an evolving landscape surrounding AI technology and its intersection with creative arts, marking a significant moment as these Hollywood giants confront the implications of generative AI. Disney and Universal’s complaint spans a hefty 110 pages and suggests that Midjourney operates like a “virtual vending machine,” producing unauthorized reproductions of characters from franchises such as “Frozen,” “Shrek,” and “Star Wars.”
Midjourney, founded in San Francisco and popular for its AI-generated images, has rapidly gained traction since its public launch in 2022. The subscription-based platform allows users to create images by inputting specific prompts, with monthly fees ranging from $10 to $120. The company reported around $300 million in revenue last year and boasts the largest Discord community in its sector, with over 21 million members.
According to the studios, Midjourney’s image-generating capabilities are based on an enormous dataset scraped from the internet, which has raised concerns about copyright violation. The company’s founder, David Holz, acknowledged in prior interviews that obtaining permission for the multitude of images utilized in training their AI is virtually impossible due to the lack of a comprehensive registry for copyright owners.
With the latest developments and updates, Midjourney has been enhancing the quality of its services. Its latest release, Version 7, debuted in April, and the company is exploring video generation technologies, hinting at an upcoming commercial video service. The studios argue that this expansion could exacerbate the copyright issues already at play.
In their legal claims, Disney and Universal assert that Midjourney has willfully engaged in systematic copyright infringement, featuring side-by-side comparisons in their complaint to illustrate the similarities between AI-generated images and official character designs. The lawsuit seeks both compensatory damages and Midjourney’s profits, as well as statutory damages of up to $150,000 for each work infringed.
The studios have also requested an injunction to halt the distribution of Midjourney’s image and upcoming video services until appropriate copyright safeguards are established. They have emphasized the necessity of such protections to maintain the integrity of U.S. copyright law, which provides the framework that allows for the creative investments behind their iconic characters.
In an initial response to the ongoing legal issues, Holz expressed optimism about Midjourney’s future, stating in a conference that while he couldn’t discuss specifics, he believed the company would continue to thrive.
As the legal landscape evolves and courts grapple with the implications of generative AI, the outcomes of cases like this one may influence the broader industry. The concept of “fair use” — which permits certain uses of copyrighted material under specific conditions — remains a contentious point among AI companies, with the results of Disney and Universal’s lawsuit potentially setting significant precedents for the treatment of copyright in the age of artificial intelligence.
With generative AI’s reach expanding, the implications of such lawsuits extend beyond just the aggrieved studios. Concerns have escalated among writers, artists, and other creatives about the potential for their works to be used without permission or compensation, sparking recent labor movements in Hollywood against the misuse of AI technologies.
Disney has acknowledged the potential benefits of AI but insists that its usage must adhere to legal and ethical standards. The dispute with Midjourney exemplifies the challenges studios face in navigating the balance between innovation and intellectual property rights in an increasingly digital world.
Legal challenges against AI companies are not exclusive to this case. Similar lawsuits are currently unfolding against various firms accused of copyright infringement, as the questions surrounding AI’s impact on creativity and ownership continue to escalate.
This ongoing legal battle is poised to significantly shape the future of both the entertainment industry and the realm of artificial intelligence.
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