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Disney And Universal Launch Landmark Copyright Lawsuit Against AI Innovator Midjourney

Disney and Universal have taken a decisive step in safeguarding their creative assets by initiating a landmark copyright lawsuit against AI image generator Midjourney. This case marks the first instance of major Hollywood studios confronting the evolving challenges posed by artificial intelligence in the realm of copyrighted content.

Key Allegations

The studios contend that Midjourney has been systematically distributing AI-generated images that mimic characters from iconic franchises such as Star Wars, The Simpsons, Cars, Toy Story, Shrek, The Avengers, and the Minions series. Despite repeated requests to cease these activities, Midjourney allegedly persisted, intensifying concerns over unauthorized use and potential copyright violations.

Industry Implications

This legal action extends beyond a single contractual dispute; it highlights a broader conflict at the intersection of artificial intelligence and intellectual property law. As AI tools rapidly transform the creative landscape, the studios argue that unchecked replication of their copyrighted material undermines the fundamental incentives built into U.S. copyright law.

Executive Insights

Senior executives have underscored the critical nature of the dispute. Kimberley Harris, Executive Vice President and General Counsel of NBCUniversal, remarked, “Creativity is the cornerstone of our business. We are bringing this action today to protect the hard work of all the artists whose work entertains and inspires us, as well as the significant investment we make in our content.” Similarly, Horacio Gutierrez, Senior Executive Vice President and Chief Legal and Compliance Officer of The Walt Disney Company, emphasized that while AI holds promise, “piracy is piracy, and the fact that an AI company does it does not make it any less infringing.”

Legal Precedent And Future Outlook

Filed in the United States District Court for the Central District of California, the lawsuit seeks a jury trial. It challenges the operations of Midjourney—a platform that has amassed millions of subscribers and achieved substantial revenue. The outcome of this litigation could set a significant legal precedent, clarifying how intellectual property rights are enforced in the digital age and influencing the future use of AI technology in creative industries.

As the media landscape evolves, this case serves as a critical reminder of the importance of protecting creative investment and maintaining robust copyright protections in an era characterized by rapid technological innovation.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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