Disney and Universal Sue AI Startup Midjourney for Copyright Infringement

• Disney and Universal sue AI firm Midjourney for copyright infringement over use of iconic characters
• Hollywood strikes back: Disney and Universal file major lawsuit against AI startup Midjourney
• Midjourney faces $150,000-per-violation lawsuit from Disney and Universal over AI-generated content

In a landmark legal move, Disney and Universal have filed a lawsuit against AI image-generating startup Midjourney, accusing it of "textbook copyright infringement" and labeling it a "bottomless pit of plagiarism." The 110-page complaint, filed on June 11, 2025, in U.S. District Court in Los Angeles, marks Hollywood’s first major legal action against a generative AI company, signaling a pivotal moment in the ongoing debate over AI and intellectual property.

In their 110-page complaint, the studios say Midjourney’s AI was trained on their movies and characters without their okay. They claim the tool lets anyone create knock-off images of their icons, basically acting like a “copy machine” that churns out fakes. Disney and Universal, who don’t usually team up, want a jury to decide the case. They’re asking for up to $150,000 for each copyright violation, a court order to stop Midjourney from using their stuff, and a peek into how the AI was built.

Midjourney, which started in 2021, reportedly raked in $300 million last year with subscriptions from $10 to $120 a month. Its AI can whip up slick images just by typing something like “Darth Vader strutting in Paris.” The studios say this hurts their business and the $260 billion U.S. movie industry. Disney’s head lawyer, Horacio Gutierrez, said copyrights are key to protecting their work, and Universal’s Kimberly Harris added they’re standing up for artists.

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This isn’t the first time AI companies have been sued—artists and news groups have gone after them too—but this case is huge because it’s Hollywood. If Disney and Universal win, AI companies might have to pay to use copyrighted stuff or tighten their rules. If Midjourney comes out on top, it could mean more AI-made content flooding the market, which worries creators. This lawsuit could totally shake up how AI works in movies and TV.