Disney Busted for Copyright Infringement Again as Court Rules the Mouse House Stole Tech for Beauty and the Beast

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In an unexpected turn of events, it’s been determined once more that The Walt Disney Company has violated copyright laws. A higher court, the Ninth Circuit Court of Appeals, overturned a previous decision that had initially exonerated Disney. The original jury’s verdict was reinstated, stating that Disney is accountable for incorporating stolen technology in one of their successful movies.

How Disney Got Here

The focus of the case is on MOVA Contour, a revolutionary motion-capture system belonging to Rearden LLC. This technology was developed to seamlessly convert real-life acting into digital characters. As per Rearden’s claims, Disney incorporated MOVA Contour in their 2017 live-action adaptation of Beauty and the Beast, but without obtaining necessary permission.

It’s said that Disney’s service provider, DD3, potentially used a software program during the creation of the visual effects for bringing Dan Stevens’ Beast character to life. Rearden asserted this action as blatant theft of intellectual property.

During the initial hearing, the jury supported Rearden, imposing a fine of $600,000 on Disney. However, the legal battle wasn’t resolved yet as Disney eventually paid slightly more than half of that amount, around $300,000.

The Disney Copyright Infringement Reversal That Didn’t Last

In August 2024, U.S. District Judge Jon Tigar surprised observers by reversing the jury’s decision. Tigar found that there wasn’t sufficient proof that Disney intentionally employed pirated software, effectively clearing the studio of any wrongdoing. For a year, it seemed as if Disney had managed to avoid accountability.

Yet, Rearden’s work remained incomplete. Subsequently, an appeal was made, and recently, the Ninth Circuit delivered a surprising legal verdict.

The Ninth Circuit Lowers Drops the Hammer

The appellate court ruled that Rearden provided enough proof for a jury to find Disney liable because Disney possessed the “capacity to prevent or curb the infringing actions of DD3.

Although Disney did not manually operate the pirated software, they held sufficient supervision and authority to prevent their supplier from utilizing it. By neglecting to exercise this control, Disney inadvertently assumed responsibility for the issue.

This reversal reinstates the original finding: Disney is guilty of copyright infringement.

Why This Matters

The decision isn’t merely concerning a single penalty or film; instead, it generates ripples that resonate powerfully throughout the entire production system of Hollywood.

  • 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?

Disney, having been found guilty twice, now confronts the awkward situation of potential further sanctions or more stringent implementation of fines. The company has yet to issue a public statement regarding the recent verdict.

It’s evident that a federal appeals court has validated the fact that, contrary to the fairytales it’s known for creating, Disney – the entertainment giant – is currently embroiled in a legale ordeal that appears self-inflicted.

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2025-09-13 20:56