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In a recent verdict, a federal jury in California has ruled that Disney (DIS.N) must pay nearly $600,000 in copyright damages for unauthorized use of Rearden LLC’s motion-capture technology in the production of its 2017 live-action remake of “Beauty and the Beast.” The jury found that Disney utilized Rearden’s MOVA Contour software without permission precisely to render the face of the Beast, portrayed by actor Dan Stevens.
Copyright Infringement Verdict
The jury, based in Oakland, awarded Rearden over $250,000 in actual damages and recommended an additional payment of more than $345,000 representing Disney’s profits from the film. Rearden’s attorney, Steve Berman, confirmed the verdict, emphasizing the significance of protecting intellectual property rights in the entertainment industry.
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Disney’s Response and Rearden’s Allegations
A Disney spokesperson expressed satisfaction with the jury’s rejection of Rearden’s request for $38 million in profits from the movie. Rearden, founded by former Apple scientist Steve Perlman, initiated the lawsuit in 2017, alleging that a “rogue” employee had stolen the Contour technology and passed it on to another company, Digital Domain 3.0.
Disney’s Denial and Legal Arguments
Disney denied the allegations, arguing that Rearden did not own the copyright to the software when “Beauty and the Beast” was in production. The company contended that it could not be held liable for copyright infringement based on Digital Domain’s use of the technology. Disney also claimed that it had collaborated with Rearden on other projects, such as “Tron: Legacy” and “The Avengers,” and had no reason to believe that Digital Domain lacked the right to use the technology.
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Financial Implications and Related Lawsuits
Rearden sought monetary damages, including a share of profits from “Beauty and the Beast,” which grossed over $1.25 billion globally. The jury’s decision may have broader financial implications for Disney, setting a precedent for other lawsuits involving the alleged misuse of technology.
Rearden has additional lawsuits against Paramount and Disney’s 20th Century Fox, temporarily paused during the “Beauty and the Beast” case. The company has also raised allegations against Disney’s Marvel concerning the alleged misuse of its technology in “Guardians of the Galaxy” and “Avengers: Age of Ultron.” These claims are currently on hold.
Case Details
The case is titled Rearden LLC v. Disney Enterprises Inc., and it is being heard in the U.S. District Court for the Northern District of California under case number 4:17-cv-04006.
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