Modern Australian
The Times

Hollywood is suing yet another AI company. But there may be a better way to solve copyright conflicts

  • Written by Wellett Potter, Lecturer in Law, University of New England
Hollywood is suing yet another AI company. But there may be a better way to solve copyright conflicts

This week Disney, Universal Pictures and Warner Bros Discovery jointly sued MiniMax, a Chinese artificial intelligence (AI) company, over alleged copyright infringement.

The three Hollywood media giants allege MiniMax (which operates Hailuo AI and is reportedly valued at US$4 billion) engaged in mass copyright infringement of characters such as Darth Vader and Mickey Mouse by scraping vast amounts of copyrighted data to train their models without permission or payment.

This lawsuit is the latest in a growing list of copyright infringement cases involving AI. These cases include authors, publishers, newspapers, music labels and independent musicians around the world.

Disney, Universal Pictures and Warner Bros Discovery have the resources to litigate hard and possibly shape future precedent. They are seeking damages and an injunction against the ongoing use of their material.

Cases like this one suggest the common approach of “scraping first” and dealing with consequences later may be unsustainable. Other methods for ethically, morally and legally obtaining data are urgently needed.

One method some people are starting to explore is licensed use. So what exactly does that mean – and is it really a solution to the growing copyright problems AI presents?

What is licensing?

Licensing is a legal mechanism which allows the use of creative works under agreed terms, often for a fee. It usually involves two key players: the copyright owner (for example, a movie studio) and the user of the creative work (for example, an AI company).

Generally, a non-exclusive licence is where, in return for a fee, the copyright owner gives the user permission to exercise certain rights but retains ownership of the work.

In the context of generative AI use, granting a non-exclusive license could result in AI companies gaining permission for use and paying a fee. They could use the copyright owner’s material for training purposes, rather than simply scraping without consent.

There are several licensing models, which are already being used in some AI contexts. These include voluntary, collective and statutory licensing models.

What are these models?

Voluntary licensing happens when a copyright owner directly permits an AI company to use their work, usually for a payment. It can work for large, high-value deals. For example, the Associated Press licensed their archive to OpenAI, the owner of ChatGPT.

However, when there are thousands of copyright owners involved who each own a smaller number of works, this method is slow, cumbersome and expensive.

Another problem is that once a generative AI company has made one copy of a work under license, it is uncertain whether this copy may be used for other tasks. Also, applying voluntary licensing to AI training is hard to scale, because training requires vast datasets.

This makes individual agreements with each copyright owner impractical. It can be complex in terms of determining who owns the rights, what should be cleared and how much to pay. The licensing fee may also be prohibitive to smaller AI firms, and individual copyright owners may not receive much revenue for the use.

Collective licensing allows copyright owners to have their rights managed by an organisation known as a collecting society. The society negotiates with the user and distributes licensing fees to the copyright owners.

This model is already commonly used in the publishing and music industries. In theory, if it is expanded to the AI industry, it could provide AI companies with access to large catalogues of data more efficiently.

There are already some examples. In April 2025, a collective license for generative AI use was announced in the United Kingdom. Earlier this month, another was announced in Sweden.

However, this model raises questions about fee structures, and the actual use itself. How would fees be calculated? How much would be paid? What constitutes “use” in AI training? It is uncertain whether copyright owners with smaller catalogues would benefit as much as big players.

A statutory (or compulsory) licensing scheme is another option. It already exists in other contexts in Australia such as education and government use. Under such a model, the government could permit AI firms to use works for training without requiring permission from each copyright owner.

A fee would be paid into a central scheme at a predetermined rate. This approach would ensure AI companies access training data while ensuring some remuneration to copyright owners. However, it removes copyright owners’ ability to say no to the use.

A risk of domination

In practice, these licensing models sit on a spectrum with variations. Together, they represent some future ways the rights of creators may be reconciled with AI companies’ hunger for data.

Different forms of licensing offer potential opportunities for copyright owners and AI companies. It is by no means a silver bullet.

Voluntary agreements can be slow, fragmented and not result in much revenue for copyright owners. Collective schemes raise questions about fairness and transparency. Statutory models risk under-valuing creative work and rendering copyright owners powerless over the use of their work.

These challenges highlight a much bigger issue which is raised when copyright is considered in new technological contexts. That is, how to strike a balance between those involved, while still promoting fairness and innovation.

If a careful balance is not struck, there is a risk of domination from a handful of powerful AI companies and media giants.

Authors: Wellett Potter, Lecturer in Law, University of New England

Read more https://theconversation.com/hollywood-is-suing-yet-another-ai-company-but-there-may-be-a-better-way-to-solve-copyright-conflicts-265663

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...

Caravan Travel for Modern Australian Getaways: Plan a Comfortable Holiday

A family road trip is one of the best ways to explore Australia together. And, travelling by caravan gives you the freedom to take your time, stop a...

Mini Excavator and Trailer Package for Sale: What I Buy as One Deal in 2026

The first client who asked me for a mini excavator and trailer package for sale wasn’t trying to save a few hundred dollars on shipping. They we...

Make Dad a Guest in His Own Home This Father’s Day

Father’s Day can accidentally turn Dad into the unpaid event manager of his own celebration. He lights the barbecue, finds extra chairs, checks wh...

Where to Enjoy Your Off-Road Caravan on the Gold Coast

With a caravan, you can travel anywhere and everywhere without battling the rush of the peak holiday season or last-minute reservations. While the r...

How Osteopathy Supports Recovery from Sciatica and Nerve Pain

Sciatica isn't just annoying. It's genuinely painful. It sits deep in your glute and shoots straight down the back of your leg. It turns something as...

The Winter Jewellery Edit: Five Pieces You'll Wear All Season

As wardrobes shift to cosy knits, tailored coats and rich seasonal textures, jewellery becomes the finishing touch that pulls every winter outfit to...

7 Signs It's Time to Upgrade Your Piston Air Compressor

If you run a workshop, panel shop, or fabrication business anywhere around Perth, you already know what heat and dust do to equipment over a few sum...

How Long Do Bathroom Renovations Melbourne Take? Step-by-Step Process Explained

Planning a bathroom renovation is exciting, but one of the biggest questions homeowners ask is, "How long will it take?" While every project is uniq...

Why Your Skin Breaks Out: The Science of Acne Explained

Acne is the most common skin condition in the world. An estimated 85% of people experience it at some point between the ages of 12 and 24, and a gro...

10 Swimwear Trends Australian Women Are Wearing This Summer

Every Australian summer brings a fresh wave of swimwear trends, but some styles have much greater staying power than others. While fashion constantly ...

Why Regular Skills Updates Are Essential for Licensed Security Officers

A guard at a Brisbane shopping centre gets a call about a shoplifter who's turned aggressive.  They’ve done the job for six years. But their de-...

10 Benefits of Choosing Professional Tutoring Penrith Services

Every student has unique learning strengths, challenges, and academic goals. While classroom teaching provides essential knowledge and structure, so...

Sunshine Coast Baby Classes Prove Big Hit Among First-Time Mums

There's a movement gaining traction on the Sunshine Coast, providing a village of support, socialisation and relief for first-time mothers and babie...

Father's Day Gift Ideas for Men Who Are Hard to Buy For

Some dads are easy to buy for. Others do not want anything, already have everything, or give you the classic "don't worry about me" answer every yea...