Midjourney users can create AI images of protected characters like Shrek, Yoda and Marvel superheroes, according to a new lawsuit.

Disney and Universal just sued Midjourney for scraping their IP—ushering in a major showdown over how AI is trained.

Disney and NBCU filed a federal lawsuit Tuesday against Midjourney, a generative AI start-up, alleging copyright infringement. The companies alleged that Midjourney’s own website “displays hundreds, if not thousands, of images generated by its Image Service at the request of its subscribers that infringe Plaintiffs’ Copyrighted Works.”