If there was actually no deal in place then Google is cooked. I've seen Gemini spit out generated photos with apparently hallucinated Disney water marks.
Did it reproduce copyrighted works? Including Disney movies in training data is not an infringement of copyright.
It was a riff on Beauty and the Beast and actually looked very much like the last live action movie.
The logo watermark itself should be infringement, no?
seems like a weakness for these generators, if you can prompt them into producing copyright violations then that seems to be pretty risky for the folks running them.