Hollywood Strikes Back! Disney, Comcast, Warner Bros Sue Chinese AI Firm

Hollywood's legal war on AI infringement just went nuclear.

Three entertainment titans—Disney, Comcast, and Warner Bros—filed a landmark lawsuit against a Chinese AI company today, alleging systematic copyright violation on an industrial scale.

The Core Allegations

The suit claims the firm trained its AI models on proprietary content without licensing—scraping everything from Marvel films to HBO series. This represents the most aggressive legal action yet against AI content training practices.

Market Implications

While lawyers rack up billable hours, investors shrug—another day, another tech company 'disrupting' by ignoring intellectual property laws. The case could set crucial precedents for AI development boundaries globally.

When creativity becomes code, who owns the output? Hollywood just bet nine figures we're about to find out.

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The case targets Hailuo AI, a video app from MiniMax that calls itself a “Hollywood studio in your pocket.” The lawsuit says Hailuo creates downloadable images and videos of famous characters without permission. The complaint cites ads featuring Disney’s Darth Vader, Universal’s Minions, and Warner Bros’ Joker, all branded with the Hailuo name and used without approval. The studios also allege that MiniMax promoted the app to U.S. consumers in a way that falsely suggested it was endorsed by them.

Legal Fight Comes at a Tough Time for MiniMax

The studios are asking for the maximum penalty under U.S. copyright law. They say the use of their characters in ads amounts to false endorsement, which courts often treat as a serious violation.

For MiniMax, the timing could not be worse. The Shanghai-based start-up, backed by HongShan (formerly Sequoia China), Hillhouse, and Alibaba (BABA), is preparing for a Hong Kong listing to fund global expansion.  A high-profile lawsuit from Hollywood may weigh on investor sentiment, especially as MiniMax is already up against stronger rivals like Midjourney and Kling AI in the crowded generative video market.

Studios Step Up Fight to Protect Their Brands

For Hollywood, the case is about more than one AI app. Studios have warned that unchecked AI models could threaten the value of their intellectual property. Earlier this year, Disney and Universal filed a similar lawsuit against U.S.-based Midjourney, calling the platform a “bottomless pit of plagiarism.”

For Disney, Comcast, and Warner Bros, the lawsuit is part of a broader effort to protect their brands in the age of AI.

Which Entertainment Stock Is the Better Buy?

We used the TipRanks Stock Comparison Tool to determine which stock is more favored by analysts. Wall Street has a “Strong Buy” consensus on Disney, supported by an 19% upside potential over the next 12 months. Meanwhile, Comcast carries a “Moderate Buy” rating, with analysts projecting about 25% upside. In contrast, WBD stock has a “Moderate Buy” rating but a price target that implies a 22% downside from current levels.