Disney and Universal have initiated a lawsuit against Midjourney, an AI image generation service, claiming it has violated copyright laws by producing unauthorized copies of their iconic characters.

The studios are seeking damages, restitution of profits, and a permanent injunction to prevent Midjourney from continuing to copy their content.

The outcome of this lawsuit could set significant legal precedents for the AI industry, particularly regarding the use of copyrighted material in training AI models without proper licensing.

A key aspect of the case will be whether Midjourney's AI-generated content is considered 'transformative' and how it sourced the content used for training its models.

Midjourney has been accused of ignoring requests to cease copyright violations, unlike other AI providers who have implemented protective measures.

Founded in 2021 and based in San Francisco, Midjourney reportedly generated $300 million in revenue last year, primarily through user subscriptions.

This lawsuit is not Midjourney's first legal challenge; it is also facing a lawsuit from ten artists who allege that their works were used without permission to train its AI model.

The complaint includes extensive documentation alleging that Midjourney engaged in significant scraping of copyrighted content to develop its algorithms.

Universal's legal counsel stated that the lawsuit aims to protect artists and the substantial investments made in content creation.

The 110-page complaint includes visual evidence comparing Midjourney's outputs to original film stills, framing the issue as clear plagiarism.

Disney's legal representatives have emphasized that while AI can foster creativity, piracy remains illegal, regardless of the medium.

Legal experts suggest that this case may establish new precedents for collaborations between Hollywood and AI firms, focusing on the need for consent in using copyrighted material.