While Midjourney Gets Sued, These Two AI Studios Get Signed

As copyright lawsuits escalate against some of the most widely used generative AI companies, two smaller studios are gaining industry traction by designing their workflows to avoid legal risk.

This week, Gennie, a generative video studio focused on nonfiction content, premiered Killer Kings on Sky History. The true crime-style docuseries features AI-generated visual reenactments. Separately, animation studio Toonstar signed with WME and announced a new original show with comedian and digital creator Nigel Ng. Both companies rely on AI to accelerate production, yet neither is facing scrutiny from copyright holders or regulators.

Gennie and Toonstar represent a different path for AI in media, one that favors preemptive compliance and transparency. Their work is broadcast-ready and structured to minimize legal exposure, offering a potential model for others.

On June 12, Disney and Universal filed a joint copyright infringement lawsuit against Midjourney in federal court, alleging that the company enabled large-scale unauthorized reproduction of copyrighted material. Getty’s separate case against Stability AI began the same week in London.

The results of these cases will likely shape how AI content is made, distributed, and monetized. In response, companies that want to operate inside the traditional entertainment ecosystem are moving to establish clearer boundaries.

Gennie was founded in 2024 by Max Einhorn, Chelsea Durgin, and Tejas Shah. Their debut series Killer Kings, produced by UK-based FirstLookTV, dramatizes the lives and crimes of six historical monarchs created using generative video. Visuals were created with tools like Google Veo and Luma’s Dream Machine, and incorporated into a more conventional documentary format featuring expert commentary and voiceover narration.

According to Einhorn, each reenactment is the product of extensive historical research and prompt engineering that draws on academic consensus. Character designs are reviewed by subject-matter experts and finalized prior to image generation. The team developed a formal framework called the “Pillars of Protection” to guide their work. This includes prompt documentation, indemnified toolchains, and AI-specific insurance coverage underwritten by Lloyd’s of London.

“Our goal is to put accurate history on screen and reduce the risk that typically comes with using generative tools,” said Einhorn. “We’re building a system where legal and creative standards can co-exist.”

Each episode of Killer Kings includes eight to ten minutes of AI-generated content, intercut with interviews and narration. Gennie operated in parallel with the UK production team, acting as a visual effects unit—designing scenes, characters, and locations with visual continuity in mind.

Toonstar was founded in 2015 by John Attanasio and Luisa Huang. The company has focused on short-form and mid-form animation designed for YouTube and social platforms. Their series StEvEn & Parker, created with TikTok personality Parker James, now draws over 30 million weekly views and has been dubbed into multiple languages using AI voice cloning technology.

This week, Toonstar became the first AI-native animation company to be represented by WME. Their first joint project is a new animated series with Nigel Ng, best known for his Uncle Roger character.

Toonstar’s production tools include Ink & Pixel, an AI animation engine customized for each show, and SPOT, a proprietary system for testing content and gathering performance data. These technologies allow the studio to move quickly, test new IP, and adjust based on audience response without sacrificing quality.

Huang said their goal is to enable creators who otherwise couldn’t access traditional animation. “We’re not replacing artists. We’re working with them to open up the format to more people,” she said.

Gennie and Toonstar have made different bets on format and audience, but both have prioritized internal guardrails over open-ended experimentation. They rely on indemnified models, avoid referencing public figures or copyrighted works, and maintain close relationships with traditional partners—from distributors to talent agencies to insurers.

This mindful, compliant approach is now paying dividends to these early movers. Killer Kings is airing on Sky History and being distributed internationally. Toonstar is scaling its model through a major agency partnership. Both companies are producing commercial content with AI while meeting the legal and editorial standards of traditional media.