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Warner Bros Discovery Sues Midjourney Over Use of Superman, Scooby-Doo in AI Images

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Warner Bros Discovery (WBD.O) has filed a lawsuit against AI photo-generation company Midjourney, accusing it of illegally using iconic characters such as Superman, Batman, Wonder Woman, Bugs Bunny, and Scooby-Doo to train and generate images without authorization.

In a complaint lodged in Los Angeles federal court, Warner Bros alleged that Midjourney built its platform by exploiting copyrighted material, enabling subscribers to create high-quality, downloadable depictions of its characters “in every imaginable scene.” The lawsuit claims Midjourney knowingly disregarded copyright protections, pointing to the company’s prior restriction on video generation from infringing images, a safeguard that was recently lifted and promoted as an upgrade.

“Midjourney has made a calculated and profit-driven decision to offer zero protection for copyright owners, even though it knows the breathtaking scope of its piracy,” the complaint states. Warner Bros is seeking damages, disgorgement of profits, and an injunction to stop further unauthorized use.

The action follows a similar case brought in June by Walt Disney and Comcast’s Universal, which accused Midjourney of misusing characters including Darth Vader, Shrek, Bart Simpson, and Ariel from The Little Mermaid.

Founded in 2022 by David Holz, San Francisco-based Midjourney has grown rapidly, amassing nearly 21 million users and generating an estimated $300 million in revenue in 2024. The company has previously argued that training AI models on copyrighted works falls under “fair use,” allowing for the “free flow of ideas and information.”

Warner Bros, whose portfolio spans DC Comics, Hanna-Barbera, Cartoon Network, and Turner Entertainment, said protecting its intellectual property is vital to safeguarding its creative partnerships and investments. “The heart of what we do is develop stories and characters to entertain our audiences,” a company spokesperson said.

The case is Warner Bros Entertainment Inc et al v Midjourney Inc, U.S. District Court, Central District of California, No. 25-08376.

ESPN-NFL Deal Faces U.S. Justice Department Antitrust Review Amid Competition Concerns

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The National Football League’s deal with Walt Disney’s ESPN, involving Disney acquiring the NFL Network and other media assets in exchange for the NFL receiving a 10% equity stake in ESPN, is expected to face a thorough antitrust review by the U.S. Department of Justice (DOJ).

Legal experts warn the transaction could raise significant competition concerns by potentially giving Disney greater control over sports broadcasting, which might reduce competition and increase costs for consumers. Andre P. Barlow, a partner at Doyle, Barlow & Mazard, noted the deal might lead to higher prices for streaming services or game access due to Disney’s dominance in sports media.

The DOJ’s Antitrust Division is anticipated to take up to 12 months to review the deal amid ongoing scrutiny of Disney’s recent acquisition attempts, including a controlling stake in Fubo TV, a sports streaming service.

This regulatory attention coincides with concerns raised in the U.S. Senate about rising costs for sports fans as more games move to streaming platforms. Senate Commerce Committee Chair Ted Cruz highlighted the cultural importance of sports and questioned why it is becoming increasingly difficult and expensive to watch games.

The NFL has reportedly engaged with about 30 congressional offices to discuss the deal’s potential to increase consumer choice. Under the agreement, ESPN would incorporate the NFL Network into its sports programming and streaming service, and merge fantasy football offerings with the NFL’s. The NFL would retain streaming rights to NFL RedZone, while ESPN would distribute it to cable and satellite providers.

Disney’s previous large-scale acquisition of 21st Century Fox assets in 2018 received rapid approval, although it required divestment of regional sports networks. Experts expect the current NFL-ESPN deal to undergo more detailed scrutiny.

Political factors may further complicate the process, including former President Trump’s past interventions related to NFL team naming controversies and lawsuits affecting media mergers.

Currently, ESPN is 80% owned by ABC Inc., a Disney subsidiary, and 20% by Hearst. The deal would reduce ABC’s stake to 72% and Hearst’s to 18% to accommodate the NFL’s 10% ownership.

Apple Pursues U.S. Formula 1 Broadcast Rights Following ‘F1: The Movie’ Box Office Success

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Apple is reportedly in discussions to acquire the U.S. broadcast rights for Formula 1 racing once the current contract expires next year, according to the Financial Times, citing sources familiar with the talks.

This move comes on the heels of Apple’s “F1: The Movie,” starring Brad Pitt, which has already grossed over $300 million worldwide. The film’s success highlights the growing appetite for Formula 1 content in the U.S.

Currently, ESPN, owned by Walt Disney, holds exclusive U.S. broadcast rights through the 2025 season. However, ESPN’s exclusive negotiation window has expired, opening the market to new bidders, including Apple and Netflix.

Apple aims to leverage the increasing popularity of Formula 1 in America, which has also been fueled by Netflix’s documentary series “Formula 1: Drive to Survive.” Netflix is another major contender for the broadcasting rights starting from 2026.

The addition of Formula 1 content could help Apple TV+ compete with streaming giants such as Netflix, Disney+, and Amazon Prime Video by strengthening its live sports portfolio. Sports broadcasting rights are considered crucial in the streaming wars, as they drive subscriber growth and advertising revenue.

In recent years, streaming platforms have made significant investments in exclusive sports rights — for example, Netflix paid over $5 billion for the exclusive streaming of WWE’s “Raw” in multiple territories starting this year.

Apple’s acquisition of Formula 1 U.S. rights would mark a significant expansion into live sports for its platform, potentially boosting subscriber numbers and market presence.