Major studios file copyright lawsuit against Chinese AI company

Disney, Universal Studios, and Warner Bros Discovery filed a joint copyright infringement lawsuit against Chinese artificial intelligence company MiniMax on September 16, 2025. The entertainment giants accuse the Shanghai-based firm of building its business around "willful and brazen" copyright violations through its Hailuo AI service.

According to the complaint filed in U.S. District Court for the Central District of California, MiniMax operates Hailuo AI as an image and video generating service that "pirates and plunders Plaintiffs' copyrighted works on a massive scale." The lawsuit alleges MiniMax markets the service as a "Hollywood studio in your pocket," an approach the studios describe as "audacious" given that the business allegedly relies on intellectual property stolen from Hollywood studios.

The technical capabilities documented in the 119-page complaint reveal how subscribers can generate high-quality, downloadable content featuring iconic characters through simple text prompts. When users request images of Darth Vader performing specific actions, according to the filing, Hailuo AI produces detailed outputs featuring Disney's copyrighted character complete with MiniMax branding. Similar results occur for requests involving Wonder Woman, the Minions, Spider-Man, and dozens of other protected characters across the three studios' properties.

MiniMax operates multiple subscription tiers ranging from free limited access to premium plans costing $199.99 monthly. The free tier provides 500 credits that expire within three days, with each image generation consuming one credit and six-second video creation requiring 25 credits. This model encourages users to upgrade to paid subscriptions that offer additional credits, watermark removal capabilities, and faster processing speeds.

The lawsuit details MiniMax's promotional strategy, which allegedly includes using copyrighted characters in official advertisements across Instagram, TikTok, YouTube, and WeChat. One promotional video shows Spider-Man and Supergirl "kissing in the park" with instructions for users to "just type what you want" into the Hailuo interface. The studios argue these marketing materials directly encourage copyright infringement while falsely implying studio endorsement.

MiniMax's "Explore" page further amplifies the alleged infringement by publicly displaying videos generated by other subscribers that feature copyrighted characters. The complaint argues this gallery demonstrates both the company's knowledge of specific infringements and its strategy to attract subscribers through unauthorized character reproductions.

The training methodology behind Hailuo AI represents a central element of the studios' allegations. According to the complaint, MiniMax collected copyrighted content through automated tools including "bots, scrapers, streamrippers, video downloaders, and web crawlers." This content underwent processing and reformatting before being used to train the AI system, creating what the lawsuit describes as "innumerable unauthorized copies" of protected works.

Technical safeguards already exist within Hailuo AI that block content containing violence or nudity, demonstrating the company's capability to implement copyright protection measures. However, the studios argue MiniMax has deliberately chosen not to apply similar protections for their intellectual property despite having received cease-and-desist requests detailing specific infringement concerns.

The cease-and-desist letter, sent August 27, 2025, specifically identified more than 30 copyrighted characters being reproduced by Hailuo AI, including characters from Star Wars, Marvel, DC Comics, Pixar, Looney Tunes, and major animated franchises. According to the complaint, MiniMax failed to respond substantively and continued generating infringing content even after receiving formal notice.

Financial stakes in the case reflect both MiniMax's rapid growth and the entertainment industry's economic concerns. The Chinese company reportedly achieved a $4 billion valuation and raised $850 million in venture capital by January 2025. Meanwhile, the studios emphasize their collective contribution of more than $260 billion to the American economy and the employment of millions in the motion picture industry.

The lawsuit seeks maximum statutory damages of $150,000 per infringed work, given the alleged willful nature of the violations. Additional relief includes injunctive measures to stop further infringement, profit recovery, and attorney fees under copyright law provisions. The studios specifically request that MiniMax be required to implement appropriate copyright protection measures before offering the Hailuo AI service.

This legal action follows previous copyright battles the same studios initiated against AI company Midjourney. Disney and Universal first sued Midjourney in June 2025, with Warner Bros Discovery joining that litigation in September. These cases represent part of a broader wave of copyright enforcement actions as traditional media companies confront unauthorized use of their content in AI training and generation.

The entertainment industry's strategy appears to involve both litigation and selective partnerships with AI companies. While pursuing aggressive enforcement against unauthorized use, some studios have explored licensing arrangements with technology companies that respect intellectual property rights and implement appropriate safeguards.

For the marketing community, this case highlights critical implications for AI-powered content creation and brand protection strategies. The emergence of AI-generated content has created new channels for brand exposure while simultaneously introducing trademark and copyright risks that require careful monitoring and enforcement.

The case also demonstrates how AI platforms are reshaping advertising landscapes through both legitimate applications and potential infringement scenarios. Marketing professionals must navigate this complex environment where AI tools offer creative efficiencies but may also pose intellectual property risks for brand owners.

Industry analysts note that successful resolution of these high-profile copyright cases could establish important precedents for AI training practices and commercial use of generated content. The outcome may influence how technology companies approach licensing negotiations and implement protection measures for copyrighted material.

The MiniMax case advances broader questions about artificial intelligence development in global markets where different legal frameworks and enforcement mechanisms apply. Chinese companies operating AI services that serve international users face increasing scrutiny from intellectual property owners willing to pursue cross-border litigation.

As AI-generated content becomes more sophisticated and accessible, the entertainment industry's enforcement strategy signals its determination to protect decades of creative investment and character development. The studios argue that allowing unauthorized use would undermine incentives for future creative work and threaten established licensing markets.

Timeline

• September 16, 2025: Disney, Universal, and Warner Bros Discovery file joint lawsuit against MiniMax in U.S. District Court for Central District of California
• August 27, 2025: Studios send cease-and-desist letter to MiniMax detailing specific copyright infringement concerns
• January 2025: MiniMax reportedly raises $850 million in venture capital, achieving $4 billion valuation
• September 2025: Warner Bros Discovery joins existing lawsuit against Midjourney for similar allegations
• June 2025: Disney and Universal file initial copyright lawsuit against AI company Midjourney
• 2021: MiniMax founded in Shanghai with backing from Chinese companies and investors

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Summary

Who: Disney Enterprises, Universal Studios, and Warner Bros Discovery filed the lawsuit against Chinese AI company MiniMax, its subsidiary Shanghai Xiyu Jizhi Technology Co. Ltd., and Singaporean affiliate Nanonoble Pte. Ltd.

What: A comprehensive copyright infringement lawsuit alleging MiniMax built its Hailuo AI service by copying protected characters and content without permission, then marketed the service using those same copyrighted properties while generating unlimited reproductions for subscribers.

When: The lawsuit was filed September 16, 2025, following an August 27, 2025 cease-and-desist letter that MiniMax allegedly ignored.

Where: Filed in U.S. District Court for the Central District of California, targeting a Shanghai-based company that serves global users through English-language interfaces and U.S. payment systems.

Why: The studios argue MiniMax's unauthorized use threatens the American entertainment industry's economic foundation and creative incentives, while circumventing established licensing markets that fund future content development.