Walt Disney (DIS) and Universal Studios Sue AI Image Firm for Copyright Infringement

Entertainment giant Walt Disney Co. (DIS) is suing artificial intelligence image creator Midjourney, alleging copyright infringement. It is the first AI copyright lawsuit from a major Hollywood studio.

Disney is joined in the lawsuit by fellow entertainment company Universal Studios, which is a subsidiary of Comcast (CMCSA). The lawsuit claims that privately held Midjourney used and distributed AI-generated characters from Disney and Universal properties such as Star Wars and The Simpsons without permission and disregarded requests to stop.

The studios included numerous examples in the lawsuit of AI-generated images of characters from the Cars, Toy Story, Shrek, Avengers, and Despicable Me film franchises. Disney and Universal are demanding a jury trial, arguing that the actions of Midjourney threaten to “upend the bedrock incentives of U.S. copyright law.”

Copyright Free-Rider?

In their lawsuit, Disney and Universal refer to Midjourney as “the quintessential copyright free-rider and a bottomless pit of plagiarism.” The studios further state that Midjourney’s actions have been “calculated and willful” and showed blatant disregard for U.S. copyright laws.

The lawsuit filed jointly by Walt Disney and Universal is the latest example of how AI has raised the stakes in the media and entertainment industries, and sparked concerns over how individuals and companies can protect content from illegal copyright infringement. DIS stock has increased 7% this year.

Is DIS Stock a Buy?

The stock of Walt Disney Co. has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 15 Buy and four Hold recommendations issued in the last three months. The average DIS price target of $124.82 implies 4.73% upside from current levels.

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