The news: In the middle of two high-profile copyright disputes that Disney, Universal, and Warner Bros. filed against Midjourney, the AI image-generation startup filed a motion asking a federal judge to force studios like to disclose how they use genAI internally, not just in consumer-facing AI outputs, per TechCrunch. 

• Midjourney stated the studios should turn over all prompts and outputs they generated on the AI platform so it can test whether the studios are cherry-picking evidence of infringement.
• Its argument is that if the studios are using AI internally for storyboarding, ideation, or production workflows, that could undercut the studios’ claim that AI training harms the market for their copyrighted works.

If compelled by the federal judge, studios could disclose some AI-use documentation but could also argue that detailed AI prompts, workflows, and outputs constitute intellectual property. 

Disney and Universal filed their lawsuit against Midjourney in June 2025, alleging its models could produce copyrighted characters like Bart Simpson and Darth Vader. Warner Bros. followed in September with its own suit over Superman and Batman images. 

Why it matters: The case could set a precedent for AI companies in cases where rights holders sue over AI training or outputs—AI companies can try to put the plaintiffs’ own AI use on trial.

• AI use could become a discoverable part of brand operations across marketing, legal, creative, procurement, and IT teams. 
• Creative brands, agencies, and platforms may need to prove not only that their AI-generated content is original or properly licensed, but also that their internal workflows don’t contradict their public IP claims.
• Brands may need documentation of which AI tools employees use, what data they upload, whether third-party vendors use genAI, and how final creative assets are cleared. 

Recommendations for brands: What started as a Hollywood copyright fight could become an industry-standard expectation. 

Consider internal AI records as insurance—store prompt histories, training sources, and output versions. If no suit comes, these records stay internal. But in the event of copyright challenges, documentation helps defend fair-use and infringement claims.

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