Midjourney demands Disney, Universal and Warner Bros. reveal their own AI usage - copyright battle escalates
What it really says
AI image generator Midjourney filed a motion on July 4, 2026 seeking to compel Hollywood studios Disney, Universal, and Warner Bros. to comprehensively disclose their own internal AI usage. The studios had previously sued Midjourney for copyright infringement because the service could generate images of protected characters such as Bart Simpson and Darth Vader on request. In its defense, Midjourney now argues that the studios may themselves be doing exactly what they are suing Midjourney for: training and using AI models with copyrighted material. Specifically, Midjourney is requesting the studios' AI business plans, research reports, training datasets, model weights, board presentations about AI, and all prompts that studio employees have ever entered on the Midjourney platform. In June, a magistrate judge ruled that studios only need to disclose information about AI applications that lead to consumer-facing content, a decision that limited disclosure obligations in favor of the studios. Midjourney is now appealing this ruling, arguing that studios should also have to disclose their internal AI use for storyboarding, ideation, and other production steps. Midjourney's core argument: training AI with publicly available images constitutes fair use, and if studios pursue the same practice internally, it demonstrates industry custom. The studios' lead attorney David Singer called Midjourney's demands a distraction tactic.
Our assessment
This case merits a yellow rating because it raises a fundamental question relevant to all creatives and rights holders, but does not yet have immediate consumer impact. The concerning side: if courts rule that training AI models on copyrighted material generally constitutes fair use, it would have far-reaching consequences for artists, photographers, writers, and other creatives worldwide. Their works could then be used for AI training without compensation or consent. The fact that Midjourney could generate protected characters like Darth Vader on request shows that AI systems can reproduce learned knowledge about protected works. The reassuring side: the case demonstrates that the legal system is actively addressing the question. Midjourney forcing studios to reveal their own AI usage brings transparency to an industry that publicly argues against AI while potentially using it internally. This transparency is ultimately positive for public debate. Additionally, the US fair use concept does not directly apply in European law, where copyright is traditionally more strongly protected.
Relevance for Germany
This case is significant for Germany and Europe for several reasons. First, the EU Copyright Directive and the AI Act contain text and data mining provisions that fundamentally differ from the US fair use concept. In the EU, rights holders have an opt-out right against the use of their works for AI training. The outcome of the US proceedings will nonetheless shape the global debate as a precedent. Second, German collecting societies such as VG Wort and VG Bild-Kunst are already negotiating compensation models for AI training. Third, German creatives and media houses are directly affected when their published works end up in training data without consent. Fourth, the realization that even Hollywood studios might use AI internally while publicly litigating against it mirrors a double standard also observable in German industry.
Fact check
The lawsuit and Midjourney's July 4, 2026 motion are consistently reported by TechCrunch, Variety, and Engadget. The demand for disclosure of AI business plans, training data, and model weights is confirmed across all three sources. The magistrate judge's June ruling limiting disclosure to consumer-facing AI applications is documented by TechCrunch and Variety. Midjourney's appeal against this ruling is supported by court documents. The original lawsuits by Disney and Universal over generated protected characters are confirmed through prior reporting by multiple outlets.
Source
- • https://techcrunch.com/2026/07/04/midjourney-wants-hollywood-studios-to-reveal-the-details-of-their-ai-usage/
- • https://variety.com/2026/film/news/midjourney-studios-ai-copyright-discovery-1236800902/
- • https://www.engadget.com/2207936/midjourney-wants-studios-that-sued-show-court-ai-use/