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The legal battle over intellectual property in the age of artificial intelligence intensified this week as Disney, Universal Studios, and Warner Bros. Discovery launched a lawsuit against Shanghai-based startup MiniMax. The case, filed in the U.S. District Court for the Central District of California, accuses MiniMax of widespread copyright infringement through its AI-powered services. If you have copyright questions or issues of your own, The Patent Baron PLLC’s preeminent Michigan copyright filling lawyer is available to help.
At the center of the dispute is Hailuo AI, a platform marketed as a “Hollywood studio in your pocket.” This subscription-based tool allows users to generate images and videos featuring some of the most iconic characters in entertainment history. From Spider-Man and Darth Vader to Bugs Bunny and Shrek, the software produces downloadable content that integrates directly with MiniMax and Hailuo branding. According to the studios, this amounts to the unlicensed commercial exploitation of copyrighted properties.
MiniMax, founded in 2021, has quickly risen to prominence within China’s competitive AI sector. Often described as one of the country’s “AI Dragons,” the company has developed multiple generative AI applications, including Hailuo and Talkie, a chatbot competing with Character.AI in the U.S. market. With a reported valuation near $3 billion and ambitions to enter the public market, MiniMax has positioned itself as a global contender. However, the lawsuit threatens to complicate its expansion and financial trajectory.
The plaintiffs argue that MiniMax has ignored repeated requests to cease unauthorized use of their content. They further claim the company has the technical capability to prevent the public display and distribution of infringing works but has chosen not to do so. The studios characterize MiniMax’s business model as an intentional disregard of U.S. copyright law, framing it as a direct assault on the creative foundation of Hollywood.
This is not an isolated incident. In recent months, major studios have escalated legal actions against AI companies that leverage copyrighted material for training and content generation. Disney and Universal previously filed lawsuits against Midjourney, a popular AI generator with millions of users. Warner Bros. initiated a separate case earlier this month against the same company. These coordinated moves underscore Hollywood’s determination to establish legal boundaries in a rapidly evolving technological landscape.
Beyond immediate compensation, the lawsuit emphasizes the broader stakes for the entertainment industry. The studios highlight the motion picture sector’s vital role in the U.S. economy, contributing more than $260 billion and millions of jobs. By framing unauthorized AI use as both cultural theft and economic harm, the plaintiffs aim to rally support for stronger enforcement and clearer regulations.
As of now, MiniMax has not issued a public response. The case will be closely watched not only by legal experts and policymakers but also by the growing AI sector, where companies face mounting scrutiny over intellectual property practices. The outcome could set critical precedents for how courts balance innovation against the protection of creative rights.
For Hollywood, the message is clear: while artificial intelligence may change how content is created and consumed, the foundations of intellectual property remain non-negotiable.
Source: Bloomberg -Disney, Universal, Warner Bros. Sue Chinese AI Startup MiniMax
Copyright laws are complicated but a good copyright lawyer can help simplify them for you and protect your content, and The Patent Baron PLLC is available to do this for you. Reach out to us today.
