New Game-Changing AI Copyright Case: Disney v Midjourney

Here’s what the Disney and Universal lawsuit against Midjourney is all about. By Jessica Eaves Mathews

What They’re Suing Over

• Copyright infringement: Disney and NBCUniversal (under Comcast) filed a lawsuit on June 11, 2025, in the U.S. District Court for Central California, accusing Midjourney of unlawfully using their copyrighted characters (like Spider-Man, Darth Vader, Elsa, Homer Simpson, Minions, Shrek, and Buzz Lightyear) in its AI-generated images. https://www.lexology.com/library/detail.aspx?g=f49c7e7c-c562-4c6c-9c9c-52b5e83ef94f

• The complaint—spanning over 110 pages—include side-by-side examples showing how Midjourney’s outputs closely mimic the studios’ characters and styles. https://s3.documentcloud.org/documents/25972151/disneynbcu-v-midjourney.pdf

Key Allegations

1. “Bottomless pit of plagiarism” & “virtual vending machine”: The studios say Midjourney scrapes copyrighted content to train its models, enabling users to produce unlimited infringing images via text prompts.https://www.wired.com/story/disney-universal-sue-midjourney/?utm_source=chatgpt.com

2. Refusal to restrict output: Despite cease-and-desist demands and requests for IP-protection measures, Midjourney allegedly continued releasing new versions capable of recreating these characters. https://www.theguardian.com/technology/2025/jun/11/disney-universal-ai-lawsuit?utm_source=chatgpt.com

3. Revenue from subscriptions: The complaint cites Midjourney earned around $300 million last year from about 21 million users, possibly profiting off infringing content. https://ew.com/disney-and-universal-sue-ai-company-over-use-of-copyrighted-characters-11753093?utm_source=chatgpt.com

   
   

Legal Stakes & Context

• Fair use defenses are expected from Midjourney, claiming its outputs are “transformative.” But legal analysts say the precise character likenesses make this defense weak washingtonpost.com.

• If successful, the plaintiffs want:

  • Unspecified damages (possibly up to ~$150K per infringing image) npr.orgapnews.com.

  • A permanent injunction to stop Midjourney from generating or distributing images infringing on their IP.

  • Technical safeguards to block such content from being made. 

• This is Hollywood's first major lawsuit against a generative AI firm over images/videos, and likely to set a precedent in this area.

Broader Implications

• AI training & copyright: The case challenges the practice of using massive online data—especially copyrighted works—for training AI, with studios pushing for licensing or filtering mechanisms.

• Industry ripple effects: A win could pave the way for more media companies to demand licensing deals or institute technical filters.

• Creative-rights defense: Creators and artists view this as a crucial step to ensure fair compensation and respect for creative IP, while AI firms argue that oversight could stifle innovation.

  
  

Next Steps

• Midjourney is expected to respond, likely invoking fair use and questioning whether its outputs are truly infringing.

• The case will likely involve technical deep dives into how the model was trained and whether outputs replicate protected expression or are genuinely transformative.

• Court decisions here could shape future licensing norms and legal frameworks around generative AI.

This lawsuit isn’t just about Midjourney—it marks a pivotal moment in how content owners and AI developers define ethical and legal limits in the age of GenAI.

See examples used in the Complaint here: