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MiniMax loses dismissal bid in Disney copyright suit

copyright ai video generative ai china ai copyright ai-business

Key insights

  • Judge Blumenfeld denied MiniMax's dismissal motion, ruling US courts have jurisdiction over the Chinese AI firm despite its lack of physical US presence.
  • Full discovery compels MiniMax to disclose Hailuo's training data documentation, model architecture decisions, and US revenue figures.
  • The case, filed September 2025, is the most advanced Hollywood copyright lawsuit against a Chinese AI company currently in US courts.

Why this matters

Discovery will force MiniMax to expose its training data pipeline and US revenue, creating a fact record that other studios and AI companies will scrutinize closely. The jurisdiction ruling that a Chinese AI company serving US users has US legal exposure despite lacking a physical presence raises the stakes for every foreign AI firm distributing products in America. A studio victory would establish that AI-generated content featuring copyrighted characters constitutes infringement, directly impacting how foundation model companies approach training data curation.

Summary

A federal judge refused to let MiniMax escape Disney, Universal, and Warner Bros. Discovery's copyright lawsuit, ruling the complaint "plainly alleges plausible claims" and confirming US jurisdiction over the Chinese AI firm. Judge Blumenfeld rejected the claim that MiniMax was "merely a brand name" with no US contacts. Discovery now covers training data documentation, model architecture decisions, and Hailuo's US revenue figures. Essentially: (Disney, Universal, Warner Bros. Discovery) vs. MiniMax is now the leading Hollywood-vs.-Chinese-AI copyright case in US courts. - Hailuo allegedly generated Spider-Man, Darth Vader, and Shrek content without studio authorization - Case filed September 2025; jurisdiction challenge now resolved - Full discovery will expose training data sourcing and US monetization scale The ruling sets a precedent for whether foreign AI products serving US users are bound by US copyright law.

Potential risks and opportunities

Risks

  • MiniMax's training data disclosure could expose sourcing practices that trigger additional lawsuits from music labels, publishers, or studios not currently party to the suit
  • Other Chinese AI companies with US-accessible video generation products (Kling AI, Wan Video) now face a clear legal template for studio copyright suits following this jurisdiction ruling
  • If MiniMax cannot comply with discovery due to PRC data-localization laws, it risks default judgment or adverse inference rulings, creating a harsh precedent for all foreign AI defendants in US courts

Opportunities

  • US-based AI video generation companies (Runway, OpenAI Sora) gain competitive advantage if Hailuo faces operational restrictions or reputational damage from prolonged litigation
  • IP licensing intermediaries and training-data clearinghouse platforms can position themselves as compliance infrastructure for AI companies seeking authorized studio content licenses
  • Entertainment law firms specializing in AI copyright gain a high-profile precedent-setting case, attracting new AI-company clients seeking pre-litigation training data compliance audits

What we don't know yet

  • Which specific datasets MiniMax used to train Hailuo, not yet disclosed and central to the core infringement claim
  • Whether MiniMax will seek settlement before discovery compels full disclosure of training data sources and US revenue figures
  • How the court will handle document production from a Chinese company given potential PRC data-localization law conflicts with US discovery orders