Disney and Universal Sue AI Company for Copyright Infringement

Hollywood titans Disney and Universal have sued AI (artificial intelligence) company Midjourney for copyright infringement. The 110-page suit alleges that Midjourney stole “countless” copyrighted works to train its AI engine in the creation of AI-generated images. Disney and Universal accuse Midjourney of selling an image-generating service that generates endless unauthorized copies of their copyrighted works. Midjourney’s alleged infringements include popular characters such as Darth Vader, Elsa, Shrek, and Homer Simpson.

The lawsuit seeks to prevent Midjourney from releasing an upcoming video service without copyright protections. According to Disney and Universal, Midjourney made $300 million in 2024 alone from generating AI images for users who pay a monthly subscription.

Midjourney’s AI is trained on data pulled from across the internet. According to founder David Holz, the company did not seek permission from copyright holders in advance. “There isn’t really a way to get a hundred million images and know where they’re coming from.” However, Holz has not commented on the lawsuit itself.

What Is the Fair Use Doctrine?

Other companies have previously filed suits against AI firms for copyright infringement, including The New York Times, Sony Music Entertainment, and Getty Images. The AI Industry has argued in prior suits that its use of copyrighted materials to “train” generative models is protected by the “fair use” doctrine.

The fair use doctrine allows people to use copyrighted images without consent under certain circumstances, even for for-profit uses. These factors include:

• The purpose and character of the use of the material, including its commercial nature;
• The nature of the copyrighted material;
• The proportion that was taken relative to the whole of the original work; and
• The economic impact of the taking.

Use of a copyrighted work may be permissible when such use is “transformative,” where the use adds a new meaning or expression compared with the original. The lawsuit, however, contends that Midjourney’s use of AI is anything but transformative. The lawsuit includes dozens of side-by-side screenshot comparisons of Midjourney outputs and images of copyrighted characters.

Other Fair Use Defenses

There are other related fair use defenses. For instance, mere photocopying would likely not trigger copyright laws. Parodies and satires are also permissible and are considered protected speech under the First Amendment of the Constitution. Similarly, criticism of a work, such as reviews, may also be exempted from copyright allegations.

The big problem with AI, at least in Hollywood’s eyes, is that Midjourney and others don’t change their work at all. AI removes much of the human element from the creative process but makes a profit from computer summaries of actual works. If fair use is to mean anything, actual people must edit the work rather than feed it through a computer program to do the work for them.

Should I Consult an Attorney About My Copyright Issue?

If you are facing a copyright issue or you simply want to understand how best to protect your creative works, consider reaching out to a professional. Through LegalMatch, you can easily find a skilled intellectual property attorney to assist you.