Warner Bros Discovery Settles Alcon's Blade Runner 2049 AI Image Lawsuit as Tesla Fight Continues

Alcon Entertainment and Warner Bros Discovery told a court they have settled Alcon's lawsuit over AI-generated promotional images tied to Blade Runner 2049, with the terms undisclosed. The Hollywood Reporter first reported the filing. Alcon continues to pursue Tesla and Elon Musk.

Inside the Alcon Settlement Filing

Alcon, the production company behind Blade Runner 2049, sued Tesla over its use of images from the film to create AI-generated promotional material, and brought a related claim against Warner Bros Discovery accusing the studio of facilitating the infringement. The filing stated: "Alcon and WBD have reached a settlement." The companies did not disclose terms.

Alcon alleged that an image shown at Tesla's 2024 robotaxi unveiling, held on a studio lot, was meant to be read as an actual still from the film's sequence of Ryan Gosling's character exploring a ruined Las Vegas. Alcon said it does not want the movie affiliated with Musk because of his political and social views, citing ongoing efforts with potential partners for an upcoming TV series.

Alcon's claims against Warner Bros Discovery were for direct and contributory copyright infringement. The direct claim was dismissed, with the court finding the studio was not responsible for overseeing Tesla's work on the presentation. Lawyers for both companies moved to dismiss the claims against the studio in September.

Tesla and Musk Press a Fair Use Defense

Tesla and Musk have argued that the practice constitutes fair use, the doctrine permitting use of copyrighted works without a license. They have stressed that Musk used the image to emphasize the value of autonomous vehicles by criticizing the "dark and dismal" dystopian future depicted. "I believe we want that duster he's wearing, but not the, uh, not the bleak apocalypse," Musk said at the presentation. The case raises the question of whether an AI image generator copying part of a copyrighted work without a license infringes.

Warner Bros Discovery's Merger Run-Up

Paramount Skydance acquired Warner Bros Discovery for $31 per share, a deal approved by the U.S. DOJ and EU but blocked by a California-led antitrust lawsuit that secured a temporary restraining order, according to Wikipedia. The Sydney Morning Herald reported Paramount completed its $158 billion acquisition of Warner Bros Discovery. Bloomberg reported Poland will review Paramount Skydance's purchase of TVN SA, a Warner Bros Discovery-owned broadcaster, under a procedure that can last up to 90 days.

Other IP Disputes in Court

CoorsTek won a German Federal Patent Court ruling upholding cancellation of CeramTec's trademark for pink ceramic hip components, and CeramTec has appealed. Law360 reported the First Circuit revived Temu's suit against an intellectual property attorney. Law360 also reported Altria asked the Fourth Circuit to vacate a decision allowing Juul's patent case against it at the ITC to proceed.

What Comes Next for Alcon and Tesla

Alcon's claims against Tesla and Musk remain pending, with Tesla and Musk arguing fair use. Poland's review of the TVN SA purchase can last up to 90 days.