What happened

Midjourney allegedly trained its AI model using an immense quantity of copyrighted works, including Disney’s Marvel superheroes, Star Wars characters, and Universal’s Shrek and Minions, without obtaining permission. 

The company then allowed users to generate images that closely replicate these iconic characters, profiting through subscriptions and distribution of unauthorised derivative works. 

This has potentially harmed the studios’ intellectual property rights, brand value, and revenue streams by enabling widespread reproduction without licensing or control. 

Why it happened

Midjourney's actions exemplify a “copyright free-rider” secretly exploiting existing creative works for commercial gain without proper licensing. 

The studios allege previous warnings were ignored, compelling legal action to enforce their IP rights.