copyright infringement

In the latest salvo between Hollywood and artificial intelligence companies, tech start-up Character.AI has removed many Disney characters from its chatbot platform after the Burbank entertainment giant sent the firm a cease-and-desist letter, alleging copyright infringement.

Chatbots on the Character.AI platform impersonated well-known Disney characters such as Elsa, Moana, Peter Parker and Darth Vader and generated replies that simulated the “essence, goodwill, and look and feel of each character” and also incorporated their backstories, according to a letter dated Sept. 18 from a law firm representing Disney.

“These actions mislead and confuse consumers, including vulnerable young people, to believe that they are interacting with Disney’s characters, and to falsely believe that Disney has licensed these characters to, and endorsed their use by, Character.ai,” the letter said. “In fact, Character.ai is freeriding off the goodwill of Disney’s famous marks and brands, and blatantly infringing Disney’s copyrights.”

Disney also raised concerns about reports that chatbots have engaged users in inappropriate conversations.

A spokesperson for the Menlo Park-based startup said in an email that Character.AI responds “swiftly” to rights holders’ requests to remove content and noted that all of the characters on the service are generated by users.

On Tuesday afternoon, a few Disney characters remained on the platform, including Elsa from the hit animated film “Frozen.” The spokesperson said removing the characters is a process.

“We want to partner with the industry and rightsholders to empower them to bring their characters to our platform,” the spokesperson said. “Our goal is to give IP owners the tools to create controlled, engaging and revenue-generating experiences from deep fandom for their characters and stories, expanding their reach using our new, interactive format.”

Friction between Hollywood studios and AI firms has been growing.

In June, Disney and Comcast’s Universal Pictures sued AI company Midjourney, alleging that its image generator infringed on its copyrighted characters from franchises such as “Star Wars” and “Despicable Me.”

Warner Bros. Discovery joined the legal fight earlier this month, alleging that Midjourney’s software was producing rip-offs of characters such as Scooby-Doo and Superman.

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.

The world’s largest sports pirating site, Streameast, is no more.

The illegal streaming giant was terminated in Egypt after a sting operation, according to the Alliance for Creativity and Entertainment, one of the country’s largest antipiracy coalitions. Egyptian law enforcement and ACE shut down the service Aug. 24 following a yearlong investigation.

Streameast had 80 associated domains and amassed more than 1.6 billion visits during the past year. It offered access to sports’ biggest events, including Europe’s football championships, the NFL, NBA, MLB, pay-per-view boxing and F1 races. It garnered an average of 136 million monthly visitors, primarily based in the U.S., Canada, the U.K., the Philippines and Germany.

“With this landmark action, we have put more points on the board for sports leagues, entertainment companies, and fans worldwide — and our global alliance will stay on the field as long as it takes to identify and target the biggest piracy rings across the globe,” said Charles Rivkin, chairman of ACE and head of the Motion Picture Assn., in a press release.

Two men were arrested about 20 miles outside of Cairo under suspicion of copyright infringement. Authorities confiscated devices, including laptops and smartphones thought to be operating the site, cash and several credit cards. Investigators also identified a shell company possibly used to launder the advertising revenue, which totaled to around $6.2 million, and an investment of $200,000 in cryptocurrency. Several properties in Egypt were also allegedly purchased with these funds.

In addition to working with local Egyptian authorities, ACE’s investigation was aided by Europol, the U.S. Department of Justice, Office of the U.S. Trade Representative and National Intellectual Property Rights Coordination Centre, according to the Athletic’s reporting.

All sites previously associated with Streameast will be redirected to ACE’s “watch legally” page, which provides links to authorized streaming video providers. This announcement comes a day before the NFL’s regular season kicks off.

Eight Mile Style, a company that owns some of Eminem’s most popular songs, is suing social media giant Meta over alleged copyright infringement.

The lawsuit, filed in a federal court in Michigan, accuses the Menlo Park-based tech company of storing, reproducing and distributing Eminem’s music without obtaining the license to do so.

Eight Mile Style, which is based in Ferndale, Mich., is seeking at least $109 million from Meta and a court order to stop several alleged forms of copyright infringement.

Music is a big part of social media. On Meta’s platforms such as Facebook and Instagram, people add music in photos and videos they share publicly or with their friends and family.

But the way social media has changed the way people listen to and discover new songs has also sparked concerns from artists about whether they’re fairly compensated.

“Meta’s years-long and ongoing infringement of the Eight Mile Compositions is another case of a trillion (with a ‘T’) dollar company exploiting the creative efforts of musical artists for the obscene monetary benefit of its executives and shareholders without a license and without regard to the rights of the owners of the intellectual property,” the lawsuit said.

Meta said in a statement that it has licenses with thousands of partners globally and an “extensive” global licensing programs for music on its platforms.

“Meta had been negotiating in good faith with Eight Mile Style, but rather than continue those discussions, Eight Mile Style chose to sue,” the company said in an email.

Eight Mile Style owns and controls 243 compositions recorded by Eminem, a rapper and music producer that has created popular hits such as “Lose Yourself.” Meta did remove some of these songs including “Lose Yourself” from its music libraries, but other versions of the music including a piano instrumental cover and a karaoke version still remain on the platform, according to the lawsuit.

Meta not only allowed users who upload these songs to infringe on copyright but knowingly stored and reproduced them in its music libraries so users can use the music in videos and photos, the lawsuit alleges. Users have added Eminem’s music in millions of videos that have been viewed billions of times, according to the lawsuit.

Meta also unsuccessfully tried to obtain a license for Eminem’s songs as part of negotiations with the digital music royalty company Audiam even though the firm didn’t have the authority to give them that license.

“Meta executives have actively encouraged such rampant infringement in order to attract as many users as possible to, among other things, make advertising on their services more profitable for themselves,” the lawsuit said.

More than 3 billion people use one of Meta’s apps daily, and the company makes billions of dollars every quarter from advertising.

In the first three months of this year, Meta’s revenue reached $42.31 billion, an increase of 16% year-over-year. The company’s net income jumped by 35% to $16.6 billion in the first quarter.

This isn’t the first time Meta has faced legal issues over the use of Eminem’s music. In 2013, Eight Mile Style sued Facebook, alleging the social network used the Eminem song “Under the Influence” for an ad without their consent.