What happened

The studios allege that Shanghai-based MiniMax built its AI image and video generation platform Hailuo AI by systematically stealing copyrighted intellectual property from Hollywood. 

The service, marketed as a "Hollywood studio in your pocket," allows users to generate high-quality images and videos of famous characters including Darth Vader, Superman, Wonder Woman, the Minions, and Iron Man without permission from the copyright holders. 

The lawsuit, filed in U.S. District Court for the Central District of California, claims MiniMax completely disregards U.S. copyright law and treats the studios' valuable characters as if they were its own property. 

The studios argue that MiniMax has the technological capability to block infringing content, pointing to existing safeguards that prevent violent, sexually explicit, or politically-related material, yet chooses not to implement similar protections for copyrighted characters. 

The companies also claim they sent cease-and-desist demands to MiniMax that were ignored.

Why it happened

This lawsuit represents part of a broader pattern where AI companies have been developing their technologies using data harvested from the internet without compensation to original creators. 

MiniMax's alleged business model relies on using Hollywood's intellectual property to train its AI systems and generate revenue from subscribers who can create content featuring these protected characters. 

The studios contend that MiniMax's approach demonstrates a deliberate strategy to build a profitable service on the foundation of stolen content rather than licensing agreements or original material. 

The case follows similar legal actions by these same studios against AI startup Midjourney earlier in 2025, indicating Hollywood's increasingly aggressive stance toward protecting intellectual property from unauthorised AI training.