The lawsuit originates from a company named Rearden, which is asserting ownership over a VFX technology that takes facial performance capture, and helps to create CGI characters with the data. Rearden alleges in its suit that a third party vendor made unauthorized copies of their software, which were then used to make massive films like Avengers and Beauty and the Beast. After successfully arguing their case against the third parties in question, they are now arguing that Disney, having been legally allowed to monitor these vendors, shares some responsibility for the theft of their software.

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This means that Rearden is essentially arguing that it is owed a cut of every one of these blockbuster movies. The judge initially rejected the argument that Rearden’s software is the key ingredient in the final result, as opposed to the actors or artists involved, but has allowed them to argue that Disney is culpable for the copyright infringement done by the third parties they hired. Disney, perhaps justifiably worried about being forced to provide a cut of their profits, has countered by arguing that “Rearden has no evidence that consumers decided to see any of the Motion Pictures at issue here because a third-party vendor, months (or more) before the Motion Picture’s release, made temporary RAM copies of software that no consumer saw.”

At the moment it is unclear what kind of legal consequences Disney may be facing in the near future. While the company is clearly trying to limit the scope of damages, there is still a strong case to be made for infringement on Rearden’s property either way, given their win against the third parties. The claim that Rearden is entitled to a cut of film profits has been characterized by Disney as “mischief in the extreme,” but the exact details of what is owed, if anything, will be up to the judge after both sides have made their arguments.

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Source: The Hollywood Reporter