In a stunning turn of events, The Walt Disney Company has once again been found guilty of copyright infringement after a federal appeals court reversed a prior ruling that had cleared the entertainment giant. The Ninth Circuit Court of Appeals reinstated the original jury verdict, declaring that Disney bears responsibility for using stolen technology in one of its blockbuster films.
How Disney Got Here
The case centers on MOVA Contour, a groundbreaking motion-capture system owned by Rearden LLC. The technology was designed to flawlessly transfer human performances into computer-generated characters. According to Rearden, Disney used MOVA Contour in its 2017 live-action remake of Beauty and the Beast—without permission.
The Beast in Disney’s Live Action Beauty and the Beast – YouTube, DisneyMusicVEVO
Disney’s vendor, DD3, allegedly deployed the software in the visual effects work that brought Dan Stevens’ Beast to life. Rearden claimed this was outright theft of intellectual property.
In the first trial, a jury sided with Rearden, slapping Disney with a $600,000 fine, of which the company ended up paying just over $300,000. But the courtroom drama didn’t stop there.
The Disney Copyright Infringement Reversal That Didn’t Last
In August 2024, U.S. District Judge Jon Tigar stunned industry watchers by overturning the jury’s verdict. Tigar ruled that there wasn’t enough evidence Disney knowingly used the pirated software, essentially letting the studio off the hook. For a year, it looked like Disney had escaped liability.
Bob Iger via CNBC Television YouTube
But Rearden wasn’t finished. They appealed, and now the Ninth Circuit has dropped a legal bombshell.
The Ninth Circuit Lowers Drops the Hammer
The appellate judges concluded that Rearden did, in fact, present sufficient evidence for a jury to hold Disney responsible. The key phrase? Disney had the “practical ability to stop or limit DD3’s infringing conduct.”
Bob Iger | 2019 Disney Legends Awards Ceremony | D23 EXPO 2019. Photo Credit: nagi usano from Tokyo, Japan, CC BY-SA 2.0 <https://creativecommons.org/licenses/by-sa/2.0>, via Wikimedia Commons
Translation: Even if Disney didn’t personally press the button on the pirated software, the studio had enough oversight and control to prevent its vendor from using it. And by failing to do so, Disney became liable.
This reversal reinstates the original finding: Disney is guilty of copyright infringement.
Why This Matters
The ruling isn’t just about one fine or one movie. It sends shockwaves through Hollywood’s entire production pipeline.
- Studios are on notice. Outsourcing effects work doesn’t mean escaping responsibility. If a vendor uses stolen software, the studio can still be dragged into court.
- Inventors and innovators are emboldened. Rearden’s CEO, Steve Perlman, praised the decision, saying it would help protect creative breakthroughs from being exploited by entertainment giants.
- Disney’s image takes another hit. After years of brand-damaging headlines, being labeled guilty of copyright theft again adds fuel to critics who argue the company’s golden era is long gone.
What’s Next for Disney?
The Mouse House now faces not only the embarrassment of being found guilty twice but also the possibility of additional penalties or stricter enforcement of damages. Disney has not commented publicly on the new ruling.
HULU ON DISNEY+ CELEBRATION – Some of the biggest stars across The Walt Disney Company celebrate the official launch of Hulu on Disney+ at an exclusive cocktail reception hosted by Dana Walden and Alan Bergman, along with special guest Bob Iger, on Friday evening in Los Angeles. (Disney/Greg Williams)
DANA WALDEN (CO-CHAIRMAN, DISNEY ENTERTAINMENT, THE WALT DISNEY COMPANY), ROBERT A. IGER (CHIEF EXECUTIVE OFFICER, THE WALT DISNEY COMPANY), ALAN BERGMAN (CO-CHAIRMAN, DISNEY ENTERTAINMENT, THE WALT DISNEY COMPANY)
What’s clear is this: a federal appeals court just confirmed that Disney—the company that built its empire on fairy tales—is now living through a legal nightmare of its own making.
Are you surprised that Disney is guilty of copyright infringement? Sound off in the comments and let us know!
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