In a landmark legal development, entertainment giants Disney and Universal have filed a high-profile lawsuit against an online image-generation platform, alleging the unauthorised use of iconic, copyrighted characters such as Spider-Man, Elsa, and Shrek.

This may represent a pivotal step toward establishing clearer legal boundaries around AI-generated content offering both reassurance to copyright holders and signalling the emergence of a new frontier in intellectual property protection.

What Happened?

Midjourney is a platform that…

The studios claim the image-generation platform is allowing users to produce strikingly similar depictions of well-known characters without licensing or approval. According to the complaint, this includes:

· Replicated visual elements of famous franchises;

· Branding elements that could confuse consumers;

· Works that directly compete with licensed or original content.

While the underlying technology may be new, the legal principle is not: copying protected work without consent is infringement, no matter how it’s done.

How will this effect businesses?

This case signals that no brand is safe from digital imitation. Whether it’s your logo, product design, marketing materials, or character artwork if it exists online, it can likely be copied, modified, and redistributed in ways you may not be aware of.

That risk is now amplified by platforms that allow users to generate content based on existing materials without confirming whether they hold the rights to do so.

Three Key Takeaways for Brand Owners

1. Your IP is vulnerable, even if you’re not in entertainment.

Disney’s case may involve famous characters, but we’re seeing similar risks across retail, design, fashion, and publishing. Any distinctive visual identity or creative content could be reused or replicated, legally or not.

2. Contracts and proactive IP filings are more important than ever.

Registering your trademarks, designs, and copyright gives you the legal footing to take action. Without this foundation, your brand is significantly harder to defend.

3. Waiting to act can lead to brand dilution or loss of value.

Once your content is misused, especially in public, digital spaces, it’s much harder to pull it back. Prevention is far more effective than clean-up.

How to safeguard against AI misuse of your IP.

• Draft carefully, preclude the use of AI in relation to any of your IP.
• Clearly display your copyright online.
• Share your IP sparingly online, do not put it into any AI platform.
• Read the AI platofrms’ terms of use

Berry Smith Comments

As experienced advisers in the intellectual property field, we can provide carefully drafted copyright agreements to ensure your copyright agreements preclude the use of AI platforms. We can also assist in trademarking your IP and preventing the misuse of your IP.