Disney and Universal have filed a joint lawsuit against AI startup Midjourney, accusing the San Francisco-based company of mass copyright infringement through its generative image tool.

In a complaint submitted to a federal court in Los Angeles, the studios allege that Midjourney “is the quintessential copyright free-rider and a bottomless pit of plagiarism,” unlawfully copying and distributing images of characters such as Marvel’s Spider-Man, Frozen’s Elsa, and Star Wars’ Darth Vader.

The legal filing is arguably the most high-profile clash yet between traditional media and generative AI. While Hollywood is increasingly exploring AI to enhance film production, the lawsuit highlights mounting tensions over intellectual property rights in the age of machine learning.

The lawsuit claims Midjourney made $300 million in revenue last year and is planning a “soon-to-be-released video service.” It accuses the company of monetising its users’ ability to generate images based on copyrighted content “without investing a penny in their creation.”

Disney’s chief legal officer Horacio Gutierrez stated: “We are optimistic about how AI can be used responsibly as a tool to further human creativity. But piracy is piracy, and the fact that it’s done by an AI company does not make it any less infringing.”

Despite what Gutierrez says about “furthering human creativity,” the lawsuit brings into focus a broader tension of where ethical lines can be drawn through the use of AI in any creative capacity. In this instance, Disney and Universal want to reap the benefits of AI – they’re already using it to de-age performers, script background characters and create entire opening credits sequences for some of their most high-profile shows (at the expense of creatives who do this kind of work for a living). Yet, both companies are drawing the line when AI helps others remix their IP.

The complaint cites a 2022 interview with Midjourney founder David Holz, who admitted the company does not obtain permission for the data it trains on: “No. There isn’t really a way to get a hundred million images and know where they’re coming from.” The suit suggests this approach underpins a “bootlegging business model” that undermines the foundations of copyright law.

Midjourney has not responded to the allegations. On its website, it describes itself as “an independent research lab” with fewer than a dozen full-time staff. Advisers include former GitHub CEO Nat Friedman and Second Life creator Philip Rosedale.

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The lawsuit comes amid increasing industry debate over AI’s role in entertainment. Recent Oscar contenders such as Emilia Perez and The Brutalist used AI-generated voice alterations, while actors like Tom Hanks and Harrison Ford have been digitally de-aged using similar tools.

Still, the plaintiffs argue the stakes go beyond creative technique. “Midjourney’s conduct misappropriates Disney’s and Universal’s intellectual property and threatens to upend the bedrock incentives of U.S. copyright law that drive American leadership in movies, television, and other creative arts,” the lawsuit claims.

“This case is not a ‘close call’ under well-settled copyright law,” the studios conclude.