In a major legal move shaking up the tech and entertainment industries, Disney and NBCUniversal filed a federal lawsuit this week against Midjourney, a San Francisco-based startup known for its AI-powered image generator. The studios accuse Midjourney of violating copyright law by generating and distributing thousands of unauthorized images based on their iconic characters, including those from Star Wars, Frozen, The Simpsons, and Marvel.
The lawsuit, filed in the U.S. District Court for the Central District of California, marks the first time two of Hollywood’s most powerful studios have taken direct legal action against a generative AI company. It reflects growing concern within the creative sector over the impact of artificial intelligence on intellectual property rights.
Allegations of Mass Copyright Infringement
According to the complaint, Midjourney’s platform has allowed its users to generate countless AI-created images that closely resemble copyrighted characters owned by the studios. The plaintiffs included a range of allegedly infringing visuals in their filing—among them, depictions of Darth Vader, Elsa, Buzz Lightyear, and Shrek.
The studios describe Midjourney as a “copyright free-rider,” accusing the company of building its business model around unauthorized content. “Piracy is piracy,” the lawsuit states, “regardless of whether the infringing material is created with AI or other tools.”
Disney and NBCUniversal further claim that Midjourney ignored multiple cease-and-desist requests and continued to release improved versions of its AI model, capable of generating even more detailed and realistic imitations of their characters.
@andrewblum.ai BREAKING NEWS: Disney and Universal sue AI startup Midjourney #ai #artificialintelligence #disney #universal #midjourney
Midjourney Responds Cautiously
Midjourney has not publicly commented on the lawsuit. However, CEO David Holz addressed the issue during a regular community call on Wednesday. “I can’t really discuss any ongoing legal things,” Holz said, “but I think Midjourney is going to be around for a very long time. I think everybody wants us to be around.”
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Holz has previously compared AI training methods to how human artists learn by observing existing art. In a 2022 interview, he argued that “to the extent that AIs are learning like people, it’s sort of the same thing,” suggesting that the resulting images fall under “fair use” protections.
Industry Leaders Weigh In
The lawsuit has sparked widespread debate within the tech and entertainment sectors. The Motion Picture Association (MPA) voiced its support for the studios, calling strong copyright enforcement “the backbone” of the creative economy.
Kim Harris, executive vice president and general counsel at NBCUniversal, issued a statement emphasizing the broader stakes: “We are bringing this action today to protect the hard work of all the artists whose work entertains and inspires us… Theft is theft regardless of the technology used.”
Horacio Gutierrez, Disney’s chief legal officer, echoed those concerns. “We are bullish on the promise of AI technology,” he said, “but piracy by an AI company is still piracy.”
The Recording Industry Association of America (RIAA) also supported the lawsuit, calling it a “critical stand for human creativity and responsible innovation.” Like Hollywood, the music industry is also grappling with legal battles over AI-generated content.
Broader Implications for AI and Copyright
This lawsuit comes amid growing legal scrutiny of how AI companies source their training data. While developers often claim protection under “fair use,” major copyright holders argue that scraping large volumes of media for profit without licensing agreements undermines the foundation of copyright law.
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Midjourney, founded in 2021, has seen explosive growth. By late 2024, the platform reportedly had nearly 21 million users and generated more than $300 million in revenue last year. The startup offers tiered subscription plans ranging from $10 to $120 per month, allowing users to create and download high-resolution AI images.
The complaint accuses Midjourney of profiting from “derivatives of Plaintiffs’ valuable copyrighted characters” without investing in their creation or securing proper rights.
Fan Reactions: Divided Over Art and AI
The lawsuit has stirred debate online, with fans and creators expressing mixed reactions.
Some users support the studios’ stance, arguing that unchecked AI tools pose a real threat to the livelihoods of human artists. “About time Disney and Universal dragged Midjourney to court; AI’s been stealing. Ghibli’s getting robbed too.” one X user wrote. “Reading the full Disney/Universal lawsuit, it couldn’t be clearer: this is the end of Midjourney.”
Others are concerned about the broader implications for creativity and technology. “AI is not art. AI is dangerous. Please sue them for me,” posted one X (formerly Twitter) user.
Some creators who use Midjourney for inspiration or concept art fear that tighter restrictions could stifle accessibility and experimentation. “AI helped me visualize my indie game characters,” one developer shared. “I don’t want to lose that.”
Reading the full Disney / Universal lawsuit, it couldn’t be clearer: this is the end of Midjourney. pic.twitter.com/m5PDOK49bY
— Ed Newton-Rex (@ednewtonrex) June 11, 2025
about time Disney and Universal dragged Midjourney to court; AI’s been stealing. Ghibli’s getting robbed too.
— Ꭲɑʏᴏ (@TayoPSG) June 11, 2025
Ai is not art. Ai is dangerous. Please sue them for me
— Jasper (@turquoisepogos) June 11, 2025
A Legal First, but Likely Not the Last
This is not the only copyright case involving generative AI. The New York Times, major record labels, and visual artists have all launched similar lawsuits against companies such as OpenAI and Stability AI. In London, Getty Images is currently engaged in a trial against Stability AI, citing copyright violations nearly identical to those alleged by Disney and NBCUniversal.
While this case may set a precedent, it’s likely just the beginning of a larger reckoning over how generative AI interacts with intellectual property rights.
