Disney Challenges Lawsuit over AI Training: Can't Possibly Pursue AI advancements While Opposing Training Procedures
In a recent development, Midjourney, a popular AI image platform, has found itself at the centre of a copyright infringement lawsuit filed by media giants Disney and Universal. The lawsuit alleges that Midjourney's AI outputs are substantially similar to the studios' copyrighted works [1].
However, Midjourney has denied the infringement allegations, arguing that its AI training on publicly available imagery constitutes a transformative and lawful fair use [1]. This stance is not without precedent, as federal courts have begun issuing decisions on AI model development and copyright fair use that provide a nuanced but still evolving precedent [2].
In the case of Kadrey v. Meta Platforms Inc., courts recognised the potential for transformative uses in AI training but also stressed scrutiny over the lawfulness of data acquisition and market harm [2]. These rulings indicate that fair use defenses in AI training contexts are possible but highly fact-specific, requiring evidence that transforms the original works without harming licensing markets—a factor that some courts and rights holders argue is overlooked by AI companies [3].
The issue remains unsettled, with ongoing litigation and regulatory guidance indicating that fair use claims are plausible but not yet definitively established as a legal shield for AI training on copyrighted works [3][4][5]. Midjourney's lawyers argue that copyright law does not confer absolute control over the use of copyrighted works [1].
The lawsuit against Midjourney primarily focuses on AI outputs, arguing that users on the platform are creating images that are substantially similar to the studios' copyrighted characters [1]. The studios have accused Midjourney of "vast, intentional, and unrelenting copyright infringement" [1].
Midjourney's users are required to adhere to the terms of service, which forbid infringing on intellectual property rights [1]. The startup is represented by Bobby Ghajar, John Paul Oleksiuk, Judd Lauter, and Ellie Dupler of Cooley LLP [1].
Interestingly, Disney CEO Bob Iger spoke approvingly of AI during an annual meeting in March, stating that "technology is an invaluable tool for artists" [6]. It is worth noting that Bobby Ghajar also represents Meta in a case in which authors have accused the company of illicitly training its AI language model on their books [6].
The response filed by Midjourney states that the limited monopoly granted by copyright must give way to fair use [1]. The fair use argument safeguards countervailing public interests in the free flow of ideas and information [1]. The lawsuit was filed in June [1].
[1] Disney and Universal Sue Midjourney Over AI Image Platform
[2] Kadrey v. Meta Platforms Inc.
[3] Fair Use and AI: Navigating the Legal Landscape
[4] AI and Copyright: Unsettled Questions and Emerging Answers
[5] Copyright Office Issues New Guidance on AI Training Data
[6] Disney CEO Bob Iger Approves of AI, but Meta's Bobby Ghajar is in Court Over It
