Introduction
In a major legal showdown that could reshape the future of AI-generated art, entertainment giants Disney and Universal have filed a copyright infringement lawsuit against AI image generation company Midjourney. The complaint, submitted in federal court in Los Angeles, accuses the San Francisco-based tech company of willfully replicating and distributing AI images of iconic characters like Elsa, Darth Vader, Shrek, and more—without proper authorization.
What Are the Allegations?
Midjourney, a platform known for generating lifelike illustrations from user prompts, allegedly used copyrighted content to train its AI models and then replicated visuals owned by the studios. Examples cited include Disney’s Yoda with a lightsaber, Marvel’s Iron Man, and Universal’s Toothless from “How to Train Your Dragon.”
The studios argue that Midjourney is profiting off these reproductions, having generated over $300 million in revenue last year through paid subscriptions. Their lawsuit claims that despite repeated cease-and-desist requests, Midjourney ignored demands to stop the misuse or add technological protections.
Industry Reaction and Legal Stakes
Disney’s chief legal officer, Horacio Gutierrez, emphasized that while they support AI innovation, “piracy is piracy.” NBCUniversal’s general counsel Kim Harris echoed this, saying the suit defends the “hard work of artists” and their massive creative investments.
Meanwhile, the Motion Picture Association (MPA) backed the studios, warning that unchecked AI infringement threatens global creative leadership. “Strong copyright protection is the backbone of our industry,” said MPA chair Charles Rivkin.
Midjourney’s Defense and History of Controversy

Founded in 2021 by David Holz, Midjourney has faced previous legal scrutiny. A prior case involving ten artists claimed that Midjourney, Stability AI, and others had scraped billions of copyrighted images from the internet to train their models—without permission.
Holz himself admitted to Forbes in 2022 that the company conducted “a big scrape of the internet” and did not verify the copyright status of the collected images, stating, “There isn’t really a way to get a hundred million images and know where they’re coming from.”
What’s at Stake for AI and the Creative Industry?
This lawsuit is part of a broader wave of legal action from authors, journalists, musicians, and filmmakers challenging how generative AI companies use copyrighted materials for training datasets. The outcome could lead to stricter regulations or new licensing frameworks for AI development globally.
Disney and Universal are demanding a preliminary injunction to halt Midjourney’s service until compliance is ensured and are seeking unspecified monetary damages.
Conclusion: The Beginning of AI Copyright Reform?
The Midjourney case is not just about cartoon characters—it represents a battle over the boundaries of creativity, ownership, and technology in the AI era. As courts grapple with the implications, the entertainment and tech industries await a ruling that could reshape how AI art tools operate.
For now, AI creators should tread carefully—the age of accountability has arrived.