Hollywood studios seek up to $150,000 per infringed work as copyright battles with AI companies spread across the industry.

Walt Disney Co., Universal Pictures and Warner Bros. Discovery on Tuesday sued a Chinese artificial intelligence firm called MiniMax for copyright infringement, alleging its AI service generates iconic characters including Darth Vader, the Minions and Wonder Woman without the studios' permission.

"MiniMax's bootlegging business model and defiance of U.S. copyright law are not only an attack on Plaintiffs and the hard-working creative community that brings the magic of movies to life, but are also a broader threat to the American motion picture industry," the companies said in their complaint, filed in U.S. District Court in Los Angeles.

The entertainment companies requested that MiniMax be restrained from further infringement. They are seeking damages of up to $150,000 per infringed work, as well as attorney fees and costs.

This is the latest round of copyright lawsuits that major studios have brought against AI companies over intellectual property concerns. In June, Disney and Universal Pictures sued AI firm Midjourney for copyright infringement. Earlier this month, Warner Bros. Discovery also sued Midjourney.

Shanghai-based MiniMax has a service called Hailuo AI, which is marketed as a "Hollywood studio in your pocket" and used characters including the Joker and Groot in its ads without the studios' permission, the studios' lawsuit said. Users can type in a text prompt requesting "Star Wars'" iconic character Yoda or DC Comics' Superman, and Hailuo AI can pull up high quality and downloadable images or video of the character, according to the document.

"MiniMax completely disregards U.S. copyright law and treats Plaintiffs' valuable copyrighted characters like its own," the lawsuit said. "MiniMax's copyright infringement is willful and brazen."

"Given the rapid advancement in technology in the AI video generation field ... it is only a matter of time until Hailuo AI can generate unauthorized, infringing videos featuring Plaintiffs' copyrighted characters that are substantially longer, and even eventually the same duration as a movie or television program," the lawsuit said.

MiniMax did not immediately return a request for comment.

Hollywood is grappling with significant challenges, including the threat of AI, as companies consolidate and reduce their expenses as production costs rise. Many actors and writers, still recovering from strikes that took place in 2023, are scrambling to find jobs. Some believe the growth of AI has threatened their livelihoods as tech tools can replicate iconic characters with text prompts.

While some studios have sued AI companies, others are looking for ways to partner with them. For example, Lionsgate has partnered with AI startup Runway to help with behind the scenes processes such as storyboarding.

Disney, Universal and Warner Bros. Discovery sue Chinese AI firm as Hollywood's copyright battles spread