The Future of the Industry: How AI-Related Court Cases Are Shaping the Landscape

The recent past has been marked by reassuring developments, including the successful launch of a new Nintendo console and the generation of interest and hype for new games at summer events and showcases. However, amidst these positive developments, a lawsuit filed by Disney and NBC Universal against Midjourney, the operator of a generative AI image creation tool, is likely to have far-reaching and complex implications for the industry. The lawsuit, which accuses Midjourney of replicating copyrighted characters and material, may have a profound impact on the ability of creatives and media companies to protect their intellectual property rights in the face of new and emerging technologies. Midjourney may argue that it is not responsible for what its customers create with the tool, but if this argument prevails, it could have significant consequences for the nascent generative AI industry and IP holders. The case is likely to have knock-on effects on every company in the sector and on every business that uses their products, and may ultimately lead to a regulatory reckoning for generative AI. As the industry continues to evolve, it is crucial to keep an eye on these developments, particularly for creative industries like video games, where AI usage has been posited but tangible benefits have yet to be realized. Used judiciously, AI may help speed up development processes and reduce overheads, but applied in a slapdash or thoughtless manner, it can wreak havoc on development timelines and lead to large-scale copyright infringement. The legal threat hanging over the sector is not new, but it has been amplified, and the Midjourney judgement and its fallout may impact the creative work produced and how it is used and abused by AI products in the future. The ways in which generative AI can be used and how copyright can persist in the face of it will be shaped in courts and parliaments, and the ongoing legal turmoil over mobile app ecosystems and debates over loot boxes and consumer protection will also have significant impacts on the games industry. As the industry moves forward, it is essential to consider the complex and unpredictable landscape that is emerging and how it will shape the future of the business.