Ep 548: Disney vs. Midjourney – Will Hollywood kill AI?

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Navigating Legal Waters: Disney, Universal, and MidJourney's AI Dilemma

The increasing tension between entertainment giants and AI technology developers has reached a new crescendo with Disney and Universal taking legal action against AI company MidJourney for copyright infringement. This battle isn't just about legal proceedings but also poses significant questions for the broader AI community, especially those leveraging AI technologies for business growth.

A Closer Look at the Dispute

In June 2024, Disney and Universal filed a federal lawsuit against MidJourney, accusing the AI company of creating unauthorized replicas of their intellectual properties. According to the lawsuit, MidJourney's AI image generator produced images resembling iconic characters such as Darth Vader, Minions, and Shrek from simple text prompts. The studios describe MidJourney’s actions as emblematic of being a "bottomless pit of plagiarism."

Understanding the Allegations

The lawsuit underscores several key accusations:

  1. Direct Reproduction of Copyrighted Characters: The studios argue that MidJourney's outputs are indistinguishable copies of their copyrighted figures created without requiring specific, character-themed prompts.

  2. Unauthorized Data Scraping: It’s revealed that MidJourney admitted to scraping the entire internet without securing permissions for the copyrighted materials used to train its AI models, brushing aside the notion of obtaining necessary rights from content creators.

  3. Ignored Warnings: Despite receiving a cease and desist order, MidJourney allegedly continued enhancing its model capabilities, further exacerbating the studios' grievances.

Legal Implications and Industry Ramifications

This legal battle could mark a pivotal point for the AI industry. Successful legal action by Disney and Universal might set a precedent, prompting other entertainment conglomerates to follow suit. This has potential ramifications for AI businesses, particularly those in the creative field relying heavily on data scraping for generating content.

AI Companies and User Accountability

Interestingly, MidJourney's terms of service, updated in early 2024, place legal accountability on users for any potential copyright violations stemming from the AI's outputs. This strategic move raises ethical and operational questions for users who may unknowingly infringe on copyrights when using AI-driven tools, despite their adherence to terms of service.

Broader Copyright Challenges in AI

The case against MidJourney isn't isolated. Other major lawsuits, such as the New York Times vs. OpenAI and Getty Images vs. Stability AI, indicate a growing trend of legal scrutiny over AI-generated content. These cases highlight the urgent need for AI entities to revisit how they source and utilize protected materials.

Future Considerations for Business Leaders

As legal landscapes evolve, business decision-makers must ensure they're aware of the ramifications of integrating AI technologies. When deploying AI solutions, especially those involving creative output such as image and video generation, understanding potential legal liabilities and the nuances of fair use becomes crucial. Being proactive about compliance and advocating for ethical AI practices can safeguard businesses against unforeseen legal challenges.

Conclusion

The case of Disney and Universal vs. MidJourney serves as a critical lesson for AI developers and businesses across industries. It emphasizes the importance of ethical data sourcing, clear user agreements, and the need for ongoing vigilance as AI continues to push boundaries in content creation. For business leaders, staying informed and prudent about AI deployment will be key to navigating this complex legal terrain.


Topics Covered in This Episode:

  1. Disney Sues Midjourney: Copyright Infringement
  2. Hollywood vs. Midjourney: Legal Battle Insight
  3. Midjourney's Image Generation: User Risks
  4. AI Image Generators Under Legal Scrutiny
  5. Midjourney's Terms Shift: User Liability
  6. AI and Copyright: Visual vs. Text Differences
  7. Potential Impact: Hollywood's AI Legal Precedent
  8. Midjourney's Financial Growth Amid Lawsuit


Keywords:

Google Gemini, AI image generators, copyright infringement, Disney lawsuit, Universal lawsuit, Midjourney, AI video generation, copyright lawsuit, scraping the internet, copyrighted material, generative AI, AI entertainment category, New York Times vs OpenAI, Microsoft lawsuit, StabilityAI, AI sacrificial lamb, generative AI scene, AI creative industry, IP infringement, terms of service, Hollywood studios, Motion Picture Association, federal lawsuit, unauthorized training, infringement without prompts, technical filters, Midjourney explore page, Disney fan art, AI content creation, AI legal battles, transformative fair use, permanent injunction, model retraining, AI startups, generative AI impact.


Podcast Transcript


Jordan Wilson [00:00:46]:
Have the big AI companies finally met their match when it comes to scraping the internet and maybe infringing on someone else's copyright? Well, in this case, I'm going to say probably, because Disney and universal are suing mid journey for copyright infringement. And I'll show you the examples here on today's show. This one might look kind of cut and dry. So on today's show, I'm going to tell you what the heck this lawsuit is even about, who I think will win, and how it might not actually be mid journey that is in the most trouble. It might be you, the user. Alright. I'm excited to talk about this one. Disney versus Midjourney, and will Hollywood kill AI? Let's find out.

Jordan Wilson [00:01:40]:
What's going on y'all? My name is Jordan Wilson, and I'm the host of Everyday AI. Welcome. This is your daily livestream podcast and free daily newsletter, helping us all not just learn what's happening in the world of AI, but how we can leverage it or maybe not leverage it to grow our companies and our careers in this case. So if that's what you're trying to do, be the smartest person in AI at your company or your department, you're in the right place. It starts here. This thing's unedited, unscripted. I'm just bringing you what I like to say is the realest thing in artificial intelligence. But if you really wanna take it to the next step, you gotta go to our website at youreverydayai.com.

Jordan Wilson [00:02:14]:
Sign up for the free daily newsletter. We're gonna be recapping today's show, and keeping you up to date with everything else that's happening in the world of AI. And if you didn't know, you can go click that episodes, tab or the tracks tab on our website. Go listen to more than 540 episodes sorted by category. No matter what you care about, our website is a free AI university by some of the world's leading experts. Everything's on there. You can watch all the videos, listen to all the podcast, read everything. It's all for free.

Jordan Wilson [00:02:43]:
So that's where you need to go to level up. But, if if you're here for the AI news, make sure to just check for that in the newsletter, but let's get straight into it. Is a big AI company finally gonna go down in a copyright lawsuit? I think, especially when it comes to text, it can be hard to prove something. Right? And there's plenty of lawsuits, and we're gonna talk about those in a bit. But this one might be the most cut and dry lawsuits that we've seen to date, at least when it comes to the biggest names. So if you don't know, Midjourney, I would say, is probably one of the biggest names in AI. Yeah. Maybe you aren't using it.

Jordan Wilson [00:03:26]:
Right? But Midjourney was one of those first, AI startups, AI companies that really was riding this wave. Right before we saw impressive AI image generators from OpenAI, Google, Adobe, and the other household names, it was MidJourney. MidJourney started, this AI image craze. Even though, technically, OpenAI might have been first with its DALL E two, which is not a great looking model, I I do think, Midjourney popularized this whole category, the AI photo category, which is becoming the AI video category, which is just becoming the AI entertainment category. You can make the argument mid journey is the OG, but now they're like, o m g. They might be in a lot of trouble. Alright. So let's talk about what's actually happening here.

Jordan Wilson [00:04:19]:
So Disney and Universal have sued Midjourney for making ripoffs. Alright. And in the lawsuit that they just filed, the studios just filed, they called Midjourney. This is great language, by the way, a bottomless pit of plagiarism. You know, the old journalist and wordsmith in me had a good chuckle at that. I'm like, that's some good alliteration and a good way to paint a picture. And so let's take a little bit, kind of a a breakdown here of what's actually happening. And, I I am gonna be, showing some of the visuals on my screen from the actual lawsuit.

Jordan Wilson [00:04:57]:
So, podcast audience, if you wanna see that, they're gonna be in the newsletter. We're gonna be linking to them if you want, to see them. But let's talk about what's actually happening here and my hot take. It's hot take Tuesday after all. You know, so we do the the news Monday, hot take Tuesday, and we're doing the put AI to work Wednesday, kind of thing going on. So here's my hot take. I think this Disney lawsuit could be the first big domino to fall in the generative AI scene. There's bigger lawsuits that I think, like, as an example, the New York Times versus OpenAI and Microsoft, there's bigger lawsuits that may take longer and may alter ultimately be more consequential.

Jordan Wilson [00:05:37]:
We've seen StabilityAI, another, AI image generating company in lawsuit. This is the biggest name, and MidJourney could be the biggest domino that falls. And what Disney is asking for, they're essentially saying, hey. This can't go on. Right? They're looking ultimately for an injunction against MidJourney. And if that happens, could this be the first domino? Because Midjourney is not the only AI image generator you can go in and type a simple prompt and get something that, hey. This is copyrighted material. It's based on, you know, maybe something that's, you know, Disney or Pixar or, you know, name, fill in the blank of any, you know, major studio, major, you know, movie series, you know, Marvel.

Jordan Wilson [00:06:23]:
Right? DC. There's so many, you know, these big, billion and trillion dollar companies that own IP that's kinda just been getting ripped, for months or years by some of these AI image generators. The problem is, and here's the hot take coming. No one's going, no one's gonna go after an open AI. They wanna be friends with open AI. No one's going after Microsoft or Google or these other big companies. They don't have the pockets. Right? Even though Disney is probably the biggest player, but the studios don't have the pockets to go toe to toe with the biggest guys.

Jordan Wilson [00:07:02]:
So in this case, Midjourney just might be the AI sacrificial lamb and could actually be the first AI domino to fall. Could this impact the rest of the AI creative industry? It could. Do I think it will? I'm not sure. Right? This is one of those where I'm actually not sure how it's going to play off. Right? Play out. Like, as an example, you could say the, the New York Times versus OpenAI case. That case, I think, is bigger. The, ram potential ramifications are much higher, but I have a pretty decent idea on how that one's gonna turn out.

Jordan Wilson [00:07:39]:
I personally think that the New York Times did not make a strong case from strong case. If I'm being honest, the New York Times lawyers do not understand large language models, or at least they didn't when they first filed their report back in December 2023. Right. We're pretty far into that case. And I don't think it's going anywhere. And I think OpenAI has already done a pretty good job of, you know, kind of backhanding the New York times and being like, yeah, that's not how this works. This one with mid journey is a little cut and dry because the evidence obviously visually is hard to argue against, but is Midjourney actually going to be in trouble or is it going to be you? We covered this last year and I told y'all, I literally told y'all and you know, I bring the receipts, especially on hot take Tuesday. I told y'all gotta be careful with mid journey.

Jordan Wilson [00:08:28]:
Yeah. Guess what? They changed their terms of service and they essentially said, Hey, if we ever get in trouble for copyright, it's on you, user. It's not on us. They literally say that plainest day. Alright. So we're gonna be breaking this all down. Let's get into the details. And, hey, livestream audience, let me know what you think.

Jordan Wilson [00:08:50]:
I'm, like, I'm I'm honestly curious. Like, what do you all think? Do you think that Midjourney is gonna get sued? Do they have a chance, to win this lawsuit? Is there any way that they can overcome this when it looks I'm gonna show the example side by side. It looks plain as day. Is this gonna have a lasting impact on the generative AI space? Alright. Let's, let's get into it. Go over some of the details here. Alright. So, this lawsuit is fresh.

Jordan Wilson [00:09:21]:
Just June 11, Disney and NBC universal filed a federal lawsuit and their complaint brands mid journey as a bottomless plagiarism pit, exploiting iconic characters that are their IP that they have copyright over, and also the Motion Picture Association obviously backs the studios signaling a united Hollywood front. So, let's just say if Universal and Disney win this lawsuit, I would expect most other, studios to fall in line, whether it's against Midjourney, or other, you know, kind of AI, creative startups. Again, I I don't think the big, companies have too much to worry about right now because their pockets are deeper. Right? These studios, they're going after the small fish. Right? Because they don't wanna go toe to toe with a tech trillionaire company. A lot of times this is, you know, sometimes who just has deeper pockets, who is going to drown, who, in, legal fees and motions and drag this thing out for a decade or longer. Sometimes that's what this turns into. So I think these lawsuits are gonna start going after the, like, quote, unquote, small guys.

Jordan Wilson [00:10:32]:
Right? Even though they're not small. Right? These, AI startups that are making hundreds of millions of dollars of revenue, but there's a difference between making hundreds of real millions of dollars in revenue and tens of billions of dollars to, in revenue. You probably don't wanna go against the latter. You're gonna pick off the former. So, speaking of yeah. So in this, report, we saw that Midjourney is reportedly earning about $300,000,000 in subscription revenue, and that is projected to hit $500,000,000 of revenue in 2025. So it's not like Midjourney is some, you know, small, like, you know, two dudes in a in a basement. Like, oh, you can't, poor Midjourney.

Jordan Wilson [00:11:12]:
Right? They do say that they're a super small staff, like a dozen or so, employees what they say. So, I mean, if that's the case, like, price per, like, revenue per employee is mind boggling. We did also see that nearly 21,000,000, users generated images in September of twenty twenty four, and the studios are seeking damages and nationwide injunction, halting infringing outputs. And let's just be honest here. That's not possible. Right? There would be no way that mid journey can be like, alright. We're gonna keep the service going on, but let's take out all this stuff with, you know, with with with universal or Disney or with the Hollywood Studios. I don't know how you can undo that.

Jordan Wilson [00:11:56]:
Right? I'm sure there's a way to technically do it, but I'm guessing that it would be faster for them to start over, versus, you know, trying to weed out what's copyrighted and what's not because, yeah, there was a smoking gun that their CEO, said something, earlier, which we're gonna get to later in the episode. So, here is a actual kind of copy, of the, the lawsuit here. It's a 130 pages. I read through about half of it, used a couple AI tools to help me read through the rest. But here's what you need to know if you don't wanna read this a 130 page, lawsuit that was filed in the, in the US District Court of Central District of California. So I'd say kind of four big points here. I'm gonna bullet point them in in our newsletter. If you do wanna read that long lawsuit, we're gonna be, linking it in the newsletter, but we are gonna be showing, some of the exhibits, that, the big studios make, against Midjourney.

Jordan Wilson [00:12:54]:
So number one, I mean, pretty simple here. They say there's a direct creation of copyrighted characters. So they say that Midjourney service directly generates nearly identical images of copyrighted characters like Darth Vader, Minions, and Shrek from simple text prompts. And I showed you guys this before. You know, in Midjourney, I done this is why it's great having, like, a thousand hours or more of, like, live streams. It's like I showed you. You can even, you know, put in a prompt not asking for copyrighted content and get copyrighted content. You know, Midjourney was kind of, I'll say overzealous in how they did that.

Jordan Wilson [00:13:30]:
But, number two, admitted unauthorized training. So they said that Midjourney CEO admitted that they pull off all the data it can, and they never sought any copyright content holders consent to copy and exploit their works. So this means that they built their, that Disney is, the studios are alleging that mid journey built their AI by illegally copying vast amounts of copyrighted material. Alright. The next big point that the studios made in their lawsuit is that the AI, is that there was infringement without even specific prompts. So the AI will generate copyrighted characters as an example, Spiderman, Simpsons, the minions, even when users give generic prompts that don't specifically name the characters. That's where it's like you can't really argue against it because even when users aren't trying to generate copyrighted content, it's like it's going to happen. And then the fourth biggest point in this lawsuit is that there was a willful disregard in continued infringement, because the studios alleged that Midjourney has the technical ability to block infringing content, which they use for other filters such as nudity or violence, and that the studios did send Midjourney a cease and desist letter, but that they reportedly refused to implement any copyright protections instead released a what they called a new and improved version of their service that continued to generate what the studio said were infringing images.

Jordan Wilson [00:15:01]:
So, yeah, It's a very long, lawsuit and there's a lot of examples that literally show side by side. But for our audience here, I'll show you, one or two very quick examples. So, you know, this one in the lawsuit, the studio say in response to the prompt stormtrooper battle scene movie still screen cap, Midjourney accessed the data about Disney's copyrighted work that is stored by the image service and then reproduced publicly displayed and made available for download an image output that copies Disney's stormtroopers as shown in this screenshot. And then on the right side of the lawsuit, they include two, pieces of Disney's copyrighted characters in the stormtroopers from Star Wars. And then on the left side, it is the mid journey output, which is better. Right? It's kinda funny. The mid journey, like, visually looks way better, than Disney's, you know, copyrighted characters that they, included. I don't know if that was intentional or not.

Jordan Wilson [00:15:58]:
It's also, the timing on this is actually kinda funny because, yes, this lawsuit technically just dropped, but it's been right around the same time that if anyone has seen this, the kind of, viral, you know, stormtrooper vloggers have just taken over, social media. I don't know this. I haven't seen it. Or sorry. I haven't seen this personally, you know, like, on my feed because I'm not on social media aside from, like, LinkedIn. But I've seen a lot of stories, and we cover this in our newsletter that these, these essentially, you know, using these tools to first create an AI image and then going image to video. And now that there's, you know, v o3 and all of these other tools that you can use, to generate, audio. So you're seeing it's it's a little different because you can use essentially just any AI image generator with the stormtroopers because they have a helmet and you can't see their mouse.

Jordan Wilson [00:16:49]:
So people are making all of these, like, first person, you know, storm trooper vlogs that are getting millions of of views, online. So it's kind of, ironic, I guess, that those storm trooper AI vlogs are blowing up right at the same time as this lawsuit. And one of the specific things that the studios are pointing out and in their examples is stormtroopers. Obviously, one of the biggest, you know, kind of IP, I don't know, characters, and probably one of the most recognizable in the world regardless of whether you're a 70 year old or a, you know, 10 year old. It's probably one of the most recognizable, pieces of intellectual property, by the studios there. So there's a smoking gun in this. And are you to blame? Are we to blame? Who's actually gonna get in trouble? Alright. I'm gonna answer those questions here in just a second after a word from our sponsors.

Google Gemini [00:17:50]:
This podcast is supported by Google. Hey, everyone. David here, one of the product leads for Google Gemini. Check out v o3, our state of the art AI video generation model in the Gemini app, which lets you create high quality eight second videos with native audio generation. Try it with the Google AI Pro plan or get the highest access with the Ultra plan. Sign up at gemini.google to get started and show us what you create. This podcast is supported by Google. Hey, everyone.

Google Gemini [00:18:27]:
David here, one of the product leads for Google Gemini. Check out v o3, our state of the art AI video generation model in the Gemini app, which lets you create high quality eight second videos with native audio generation. Try it with the Google AI Pro plan or get the highest access with the Ultra plan. Sign up at gemini.google to get started and show us what

Jordan Wilson [00:18:58]:
you create. Alright. So what is this smoking gun, and is MidJourney just trying to pass the blame to users? So, here's the smoking gun. So in a 2022 interview, MidJourney CEO essentially admitted that they do a big scrape of the entire Internet and essentially acknowledged that it is impossible for them to be tracking permissions for, hundreds of millions of scraped images, which I didn't even know there's that many scraped images. Also, like I said, you can just prompt Darth Vader and it will return a flawless copyrighted design in seconds. Right. And you can even describe Darth Vader without using the word Star Wars or Darth Vader, and it's very possible you would get Darth Vader. So essentially it's already been said in the interview that mid journey essentially just scrapes the internet.

Jordan Wilson [00:19:51]:
Guess what's on the internet. Mainly just copyrighted material, right? There's very few things that are, as an example, creative comments on the Internet. I would venture to guess that it's like a fraction of 1% in terms of visuals that are on the Internet that are actually, technically free and available to scrape. And even in those cases, you would have to do so with attribution. But that's just not how, these AI image models work. They don't attribute. Right? So the argument from a lot of the AI image generators is, well, we don't, you know, ever reproduce anything one one to one. Right? It's essentially a a mirror of society, and and we put together every visual that's ever been made in a pot.

Jordan Wilson [00:20:32]:
And, you know, you ask for something and something that pops out is actually unique. It's never a one to one copy. But what goes into the pot? Copyrighted ingredients. Right? This has always been the, not so, secret big elephant in the room is, like, what's gonna happen, when this finally goes to court and when is if there is there gonna be a gavel that's ever against an AI company? And maybe this is, this is one of them. Because when you look at the, when you look at the evidence side by side, it's hard to argue, right? Even text on the tech side. If you ask a large language model for specific lyrics from a song, a lot of times it won't give it to you for copyright reasons. You could ask for a specific famous recipe. Right? Maybe there's a a cook that has a TV show and they're known for a recipe.

Jordan Wilson [00:21:20]:
You ask for it. It's not gonna give it to you. Right? If you ask for all, you you know, an excerpt from, you you know, a copyrighted book might not give it to you verbatim. Right? It might change some things. So even on the tech side, right, there's there's a lot of gray area and and probably more ways around this. And it's it's I think it's easier to look at the tech side, and and be like, okay. Yeah. This this seems unique.

Jordan Wilson [00:21:43]:
Right? When you look at an image side by side, you're like, no. That seems like a blatant copy. Right? So the studios say that they've been ignored and they've sent warnings. So a 2023 cease and desist letter, that they demanded the studios demanded that MidJourney take them down and the studio said that MidJourney ignored them. And they said that they alleged that then the company just released a new higher quality version despite legal pressure. And also in the lawsuit, it shows that even on Midjourney's explore page, which is kinda like a version of their homepage, it was still showcasing Disney fan art to users allegedly even after this, you know, cease and desist letter. So it's not exactly like Midjourney was trying to run away from this. Right? It's just like it's there.

Jordan Wilson [00:22:37]:
It was there the whole time. It's still there. That's not still there, but you can still very easily go find this content. Right? It's not like, you know, this lawsuit dropped, last week, and now it's scrubbed, from the website or from their servers. You can't. Alright? So who's actually to blame? Alright. So I'm a dork and I'm obviously a former, investigative reporter. So I obviously went on and found every single version of Midjourney's terms of service that I could find on archive.org, looked at them line by line and saw that, obviously, their terms have changed drastically, especially as Midjourney became a very popular tool.

Jordan Wilson [00:23:17]:
But it was actually in early twenty twenty four that their terms of service took a very unuser friendly, abrupt halt. So, essentially, in this updated terms of service from early twenty twenty four, where they're saying, yeah, copyright claims, that's on you, user. That's not on MidJourney. And there's a clause in there that warns by that violators will pay legal fees not coming from Midjourney's wallet. And the terms of service also bans IP infringement outright, and it threatens lawsuit in permanent bands. Guess what? Alright. I'm gonna I'm gonna skip ahead. Don't be shocked because we warned you.

Jordan Wilson [00:23:57]:
K? Literally, in January of twenty twenty four, right after these new terms of service came out, we did an entire episode on this. Alright? And and here's among other things, what those new terms actually said. It they say, you are responsible for your use of the service, the service being mid journey. If you harm someone else or get into a dispute with someone else, we will not be involved to the extent permitted by law. You will indemnify and hold us harmless, our affiliates and our personnel from and against any costs, losses, liabilities, and expenses, including attorney fees from third party claims arising out of, or relating to your use of the services and assets or any violation of these terms. So Mitchell, and he's essentially saying like, Hey, if you get in trouble, it's on you. It's in our terms. We're not going to help you.

Jordan Wilson [00:24:55]:
It's on you. Right? These are not normal terms for an AI company. And that's literally why we had go listen to episode 180 back in January of twenty twenty four. I actually pulled the transcript and here's what I told you, eighteen months ago. I said talking about these new terms of service, I said that becomes especially prop problematic when we start to see AI image generators like this creates highly replicated, almost pixel for pixel, perfect duplications from movies. And then I said, you might wanna relook at your use of mid journey. Mid journeys, new terms of service, a little troubling. And then later I go on to say, I don't know if you understand what's going on here.

Jordan Wilson [00:25:40]:
And I also said, I don't know if our team at everyday AI can continue to use MidJourney with these terms. There's a reason why I haven't been covering MidJourney hardly at all in the past year and a half in these new terms of service. That's one of the reasons why. Right? Essentially, they're passing all blame, a 100% blame to the users, which I like I said, that is not normal. That is not normal. But that's also the risk that you take. If you don't read the fine lines, but that's also y'all. You don't have to worry.

Jordan Wilson [00:26:16]:
You don't have to worry like about like, oh my gosh, what's going on? Anytime something like this happens, we obviously cover it on the show. This is why you need to be tuning in every single day. Because if you're trying to grow your company and career, you can't always be worried about what's in the fine print of all these services. What's changing? How does this impact me? That's what we do. That's what we do. So, you know, just shouting ourselves out because, a year and a half ago, we told you about this. Right? Yes. I went back in red, going all the way back to 2022, 2023, '24, and today's terms of service to see the differences and to see how it shift.

Jordan Wilson [00:26:51]:
And, essentially, in early twenty twenty four, Midyear News said, nope. Hey. If if if if there's ever a lawsuit, if there's ever any IP, anything, it's on you. But I don't know if that's gonna work because even when, as the lawsuit pointed out, number four, willful dis sorry. Number three, infringement without specific prompts. These are just four of the bullet points that I pulled out of this. These weren't, bullet points from the actual, 130 plus plus page, complaint. So these are four of the bullet points I pulled out.

Jordan Wilson [00:27:24]:
But the third one that I said was most important, is infringement without specific prompts. So the AI generates copyrighted characters even when users give generic prompts that don't specifically name the character. So that's what I'm saying. I think midterms is gonna try to pass the blame. Right? Because it's in their terms, and they're gonna be like, well, it's in the terms. But then, you know, users are gonna be like, yo. Like, what happened in all these times? I just said, give me a superhero, and they didn't name anyone by names. And then if it gives them all of DC and Marvel, and then they start using that, I don't know, in their marketing or something.

Jordan Wilson [00:27:57]:
And they're like, I didn't ask for, you know, copyrighted content. You gave it to me. So it's gonna be a lot of finger pointing, like, much like that, you know, that Spider Man meme where it's like mid journey terms of service user. You you know, everyone's pointing at each other. So who's ultimately going to take the blame here? But I do wanna quickly talk about these other copyright, battles because these aren't the only ones. Right? So we've seen the Getty, images versus stability AI. Right now, the judge is allowing the New York Times' lawsuit against OpenAI. Microsoft asked, could be one to, watch.

Jordan Wilson [00:28:32]:
And there's been dozens of, you know, fairly high profile individual artists or groups, that are filing over and over fresh federal infringement claims. But I think this is the big when you think about who's the biggest name in entertainment, it's gotta be Disney. Right? They've, they've got every, everything under their lineup. They're the biggest, they are entertainment. Right? So the biggest name in entertainment going against what appears to be one of the easiest targets. And at least on paper, one of the most blatant apparent violators. Right? I showed you go look side by side. I've experienced it myself.

Jordan Wilson [00:29:20]:
There's a reason, we stopped using Midjourney. And this is not just happening in movies. It's happening in other places, you know, as an example, music publishers. But they're, I think, ahead of the curve in terms of where this kind of fight is right now, with the Hollywood studios and Midjourney. And also, it is worth noting Midjourney did just release a video, mode. It's not good yet, but I'm sure it's gonna start to become really good. But on the music side, record labels have previously launched suits, lawsuits against Suno and UDL last year, but now they're actually close to licensing agreements. So maybe that's what could happen here.

Jordan Wilson [00:30:00]:
I don't think necessarily because I think there's when you're starting to talk about a AI startup, that's making hundreds of millions of dollars of revenue. I don't know. I don't know. So what's ultimately going to happen. And here's what each side is saying. Midjourney claims that their training and outputs are transformative fair use in the actual copyright law and fair use, is very much, up for debate, like, not just here in The US, but worldwide. AI companies are challenging it. They're saying, you know, copyright law is antiquated, and they're saying, you know, this is fair use.

Jordan Wilson [00:30:40]:
When we, you know, never spit something out verbatim one to one, that's fair use. So, that's the argument anyways regardless of if you believe in that or not. The studios are seeking financial damages, undisclosed amounts, and a permanent injunction to stop Midjourney from infringing on their copyright, which I don't think is possible even though the studios are saying, like, yeah, it's totally possible. I don't think it's possible. And a studio victory would force these huge model purges retraining, and I don't know if, if this is ruled against Midjourney. I don't know if Midjourney makes it out. Maybe they do. Maybe they don't.

Jordan Wilson [00:31:15]:
But I think if nothing else, that could be the biggest domino to fall. Right? Because I I would guess other studios are gonna get on board suing other smaller, AI image generator companies because at that point, the precedent is there. And at that point, is Hollywood killing AI? Maybe not. But if this is the first domino and it does fall in the studio's favor, they're at least gonna be shooting them down one by one. Alright. I hope this episode was helpful to get you caught up on what's actually happening and how it might impact, your company, your career, especially if you're in the creative field. You gotta keep an eye on this, and we're gonna be doing that for you. When there's updates, you know we're gonna be covering them.

Jordan Wilson [00:32:05]:
So I hope this was helpful. If it was, please go to youreverydayai.com. Sign up for the free daily newsletter. Hope this hot take Tuesday was a good one for you. Please join us tomorrow. We're gonna be doing, our new segment, putting AI to work on Wednesdays. It's a very good one. You're not gonna wanna miss it.

Jordan Wilson [00:32:21]:
So thanks for tuning in. Hope to see you back tomorrow for that and every day for more everyday AI. Thanks y'all.

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