Before delving into this dispute, it is worth noting an almost poetic irony: Disney, a 102-year-old entertainment giant, is now accusing 27-year-old Google of using its creations without permission. One of the oldest storytelling companies in the world is challenging one of the youngest, and most powerful tech platforms. That generational gap sets the stage for a dramatic clash between tradition and technology.
The Walt Disney Company has sent a formal cease-and-desist letter to Google, alleging that the tech giant’s artificial intelligence (AI) systems are violating Disney’s copyrights “on a massive scale.” The dispute highlights growing tensions between traditional entertainment powerhouses and Silicon Valley platforms as AI becomes more capable of reproducing copyrighted content.
What Disney Is Saying
According to the letter, Disney claims that Google has been using protected Disney content without permission to train and develop its AI models and services, and that those systems have begun commercially distributing images and videos that replicate Disney’s characters and creative works.
Disney alleges that Google’s AI tools, including image and video generators and its Gemini assistant, have produced unauthorized representations of beloved characters such as Elsa (“Frozen”), Simba (“The Lion King”), Ariel (“The Little Mermaid”), Deadpool, and characters from “Star Wars,” “Toy Story,” and “Marvel’s Avengers.” Disney says many of these outputs even display Google branding, creating the false impression that Disney’s iconic library is being used with its approval.
In the letter, Disney’s lawyers, from the law firm Jenner & Block, argue that Google is effectively acting as a “virtual vending machine” that reproduces, renders, and distributes Disney content at scale, using its AI services to profit from works that Disney created and owns. They demand that Google stop using Disney’s material in any AI training or outputs and implement technical safeguards to prevent future infringement.
Google has neither admitted to nor denied the allegations but expressed a willingness to engage with Disney on the issue. A Google spokesperson emphasised the company’s long relationship with Disney and noted that Google trains its AI on publicly available information from the open web. Google also pointed to copyright control tools such as its Content ID system on YouTube, which allows rights holders to manage how their content is used.
Disney has taken similar action in the past. In recent months, the company has sent cease-and-desist notices to other AI services like Meta and Character.AI and has joined other major studios in litigation against companies like Midjourney and Minimax over alleged copyright violations by generative AI tools.
These moves reflect a broader industry effort to define how AI companies can legally use existing creative works without eroding the value of intellectual property or disrespecting the rights of creators.
A Billion-Dollar Deal With OpenAI Comes at the Same Time
Interestingly, Disney’s legal action against Google coincides with a major strategic pivot toward another AI company. On the same day the cease-and-desist was publicised, Disney inked a $1 billion, three-year deal with OpenAI. Under this partnership, Disney’s library of characters will be licensed for use in OpenAI’s Sora AI video generator, allowing fans to create AI-generated short videos featuring characters from Disney, Marvel, Pixar, and “Star Wars.”
Disney’s Chief Executive Bob Iger defended this move as part of the company’s effort to modernise its storytelling and find new ways to engage audiences while still defending its intellectual property. At the same time, some critics have raised concerns about how safe it is to expose children to AI platforms that create content based on beloved characters, even with licensing agreements in place.
This clash raises important questions about how copyright law applies in the age of generative AI. If Google’s AI is found to be trained on copyrighted material without permission, it could set a precedent affecting how all AI developers build and distribute their models. Many media companies are already concerned that large AI platforms could erode creative control and revenue for artists unless far clearer rules and licensing frameworks are established.
Moreover, as AI becomes embedded in everyday tools, voice assistants, search engines, social apps, and video platforms, the line between inspiration and unauthorized use becomes harder to draw. Disney’s legal move signals that major content owners are no longer willing to cede ground without a fight.
At this stage, neither company has indicated whether the dispute will escalate into formal litigation. What is clear, however, is that as generative AI continues to grow, the question of how to balance innovation with copyright protection will remain a major battleground in the technology and entertainment industries.
