Back in July, we told you about the lawsuit Disney and Universal filed against Midjourney, alleging unlawful use of copyrighted images owned by those entertainment companies. At the time, we asked whether it might be a turning point for AI as the first big instance of major studios going to battle over AI-related IP issues.
Well, it has happened again. This time, Disney, Universal, and Warner Bros. Discovery are suing a Chinese company called MiniMax over its AI platform, "Hailuo AI." Why?
What the Studios v. MiniMax Lawsuit Is All About
The studios allege that the Chinese company scraped, ripped, and otherwise copied their films and shows to train its AI models. The result? Users can prompt the system to generate not only images, but also short videos of characters like Spider-Man, Wonder Woman, and Darth Vader – all without permission.
The complaint goes further, calling out the fact that Hailuo advertises itself as a "Hollywood studio in your pocket." It is a marketing choice that may come back to bite the Chinese company, as it implies direct competition with the creative industry – while using the industry's own copyrighted works as raw material.
According to the suit, the studios are seeking an injunction as well as damages of up to $150,000 per infringed work.
Is There Any Reason for You to Care about the Outcome of This Case?
Absolutely. While most of us are not running AI companies or major Hollywood studios, the questions raised in this case apply broadly to all businesses, creators, and even consumers.
What questions?
Can you use copyrighted works to train AI models without a license? This is the central dispute, and one at the heart of many lawsuits brought against AI businesses. Courts have not definitively answered it yet, but cases like this one will help set the rules.
When is output "derivative"? If an AI creates a video clip that strongly resembles Spider-Man, that is not "new" art, but an unauthorized derivative work. Businesses using AI tools should be mindful of this risk.
Does intent matter? Non-commercial experimentation with AI might raise fewer red flags. However, once a tool is marketed and monetized, the fair-use defense becomes weaker.
So, how should you proceed to avoid running into IP legal problems related to AI? Regardless of whether you are a business owner, entrepreneur, or creative professional, here are three lessons to draw from this case:
Secure your rights early.
Copyright, trademark, or trade secret protection ensures you have legal tools to protect your work. That means register your trademarks and copyrights plus take documented steps to protect trade secrets.
Respect others' rights.
AI and digital tools make copying easy, but "ease" is not the same as "legal." Always ask: do I have a license or clear legal basis to use this material?
Stay informed.
Intellectual property law is evolving quickly, especially around AI. Following cases like the MiniMax lawsuit can help you understand risks before they affect your business.
So many things about AI are still very much in flux, but knowing the rules of IP helps you stay as protected as possible, while ensuring the creativity you invest in continues to have value.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
