Alcon Entertainment has reached a settlement with Warner Bros. Discovery over claims tied to an artificial intelligence-generated image used in Tesla promotional material, narrowing a copyright lawsuit that still names Tesla and Elon Musk as defendants.
Alcon, a production company behind Blade Runner 2049, and Warner Bros. Discovery informed the court that they had agreed to resolve the dispute between them. The terms were not disclosed.
“Alcon and WBD have reached a settlement,” the court filing said.
Lawyers for the two companies had moved in September to dismiss the claims against Warner Bros. Discovery. Neither company immediately responded to requests for comment.
How Tesla’s Robotaxi Presentation Sparked the Case
The lawsuit arose from Tesla’s partnership with Warner Bros. Discovery to promote its robotaxi during a 2024 unveiling held on a studio lot.
During the presentation, Musk arrived onstage in what he called a “cybercab.” He later displayed an image featuring a trench coat-wearing male figure looking across the abandoned remains of a city surrounded by misty orange light.
Alcon alleged that viewers were meant to understand the visual as an actual still from a Blade Runner 2049 sequence in which Ryan Gosling’s character explores a ruined Las Vegas.
The production company also said it did not want the movie associated with Musk because of his political and social views. In making that argument, Alcon pointed to its ongoing work with potential partners for an upcoming television series.
Alcon accused Warner Bros. Discovery of direct and contributory copyright infringement. Contributory infringement concerns knowingly helping another party commit infringement.
The direct infringement claim against Warner Bros. Discovery was ultimately dismissed. The court found that the studio was not responsible for overseeing Tesla’s work connected to the presentation. The settlement now resolves the related dispute between Alcon and Warner Bros. Discovery, although the agreement’s financial or other terms remain private.
The AI Copyright Question Remains
Alcon is continuing its case against Tesla and Musk, keeping the central fight over the AI-created promotional visual alive.
The dispute presents a relatively new legal question: whether using an AI image generator to copy part of a copyrighted work without permission amounts to copyright infringement.
Tesla and Musk have argued that the use qualifies as fair use, a legal doctrine that can permit copyrighted material to be used without a license. Their position is that Musk invoked Blade Runner 2049 while criticizing the “dark and dismal” dystopian future shown in the promotional imagery and emphasizing the value of autonomous vehicles.
“I believe we want that duster he’s wearing, but not the, uh, not the bleak apocalypse,” Musk said during the presentation.
That defense places the meaning and purpose of the image at the center of the remaining dispute. Alcon’s allegation focuses on the visual’s connection to a recognizable movie sequence, while Tesla and Musk contend that it was used to make a broader point about an undesirable future.
ShowBiz Take
The settlement removes Warner Bros. Discovery from the active conflict, but it does not end the larger case or settle the underlying debate over AI-generated imagery and copyrighted entertainment.
For Alcon, the dispute is not limited to whether one promotional image resembled a scene from Blade Runner 2049. Its claims also address control over how the movie is associated with public figures and commercial presentations, particularly while the company is pursuing potential partners for an upcoming television project.
The case also matters because the remaining claims put a developing form of image creation alongside established copyright protections and the fair use defense. The settlement means those arguments will continue without Warner Bros. Discovery as part of the dispute.
What Happens Next?
Alcon will continue pursuing its lawsuit against Tesla and Musk. The parties remain divided over whether the AI-generated visual infringed copyright or was a permissible fair use of material associated with Blade Runner 2049.
While Alcon and Warner Bros. Discovery have resolved their part of the case, the available court information does not establish how or when the remaining dispute will be concluded.