Another AI company has landed in the legal crosshairs of Hollywood’s biggest studios, and this time it’s coming out of Shanghai.
Disney, Warner Bros. Discovery, and Universal Pictures filed a copyright infringement lawsuit Tuesday against Chinese startup MiniMax, alleging the company’s AI service, Hailuo AI, unlawfully replicates iconic characters including Darth Vader, Superman, and the Minions. Filed in U.S. District Court in Los Angeles, the suit accuses MiniMax of building a bootleg business model around the unauthorized use of studio IP to train and power its AI systems.
This isn’t a one-off. The studios are making clear they see this as a pattern, not a glitch. Just this month, Warner Bros. Discovery joined Disney and Universal in suing Midjourney, another generative AI company, for similar IP violations. The studios are framing these tools as existential threats to the entertainment industry’s economic model and to the very idea of copyright.
A “Hollywood Studio in Your Pocket”?
MiniMax’s pitch is straightforward and provocative: a “Hollywood studio in your pocket.” That’s how it markets Hailuo AI, which can generate high-quality images and even video clips of recognizable characters based on simple text prompts. According to the complaint, the service not only spits out versions of copyrighted characters like Yoda or Groot, but also uses them in ads, watermarked with the MiniMax logo.
The studios argue this kind of functionality is only possible if MiniMax trained its models directly on their content, effectively lifting data from copyrighted films and shows to power its AI engine. While Hailuo AI is currently limited to short-form content, the complaint warns that with rapid advances in AI video generation, it is only a matter of time before these tools can churn out full-length infringing films.
Studios Are Drawing a Line
The lawsuit requests damages of up to $150,000 per infringed work and seeks a permanent injunction to stop MiniMax from using any copyrighted materials. The studios are also pursuing attorney fees and a disgorgement of profits.
Motion Picture Association CEO Charles Rivkin said AI companies will be “held accountable for infringing on the rights of American creators wherever they are located.” He added that unchecked infringement “threatens the entire American motion picture industry.”
This crackdown comes at a moment of heightened anxiety for Hollywood. AI-generated content is not just a legal issue. It is a labor issue, a strategic issue, and a trust issue. Many writers and actors still reeling from last year’s strikes see AI as a growing threat to jobs. And while some studios like Lionsgate are exploring ways to responsibly partner with AI companies, the prevailing tone from the majors, at least when it comes to IP, is hardening fast.
