In 2017, Disney released its newest live-action remake, Beauty and the Beast, starring Emma Watson as Belle, Dan Stevens as the Beast, Luke Evans as Gaston, Josh Gad as LeFou, Kevin Kline as Maurice, and Emma Thompson as Mrs. Potts. The film looked absolutely stunning, and Disney was able to seamlessly transform Dan Stevens into a realistic-looking Beast.In order to create the Beast, Disney worked with a company called Digital Domain and used the MOVA Contour software, a motion-capture technology. Digital Domain has also worked with Disney on projects like Percy Jackson & the Olympians: The Lightning Thief (2010), TRON: Legacy (2010), and multiple movies in the Marvel Cinematic Universe.Credit: Disney Promotional ImageRelated: 3 Major Plot Holes in ‘Beauty and the Beast’ the Reboot FixedWhile that all seemed well and good, with Beauty and the Beast raking in more than $1.2 billion worldwide, it was not all well and good with Rearden LLC, the company that owns the copyright to the MOVA Contour software.The First LawsuitIn 2017, Rearden LLC sued Disney, claiming the company illegally used its proprietary software when it worked with Digital Domain to create the Beast’s face. Rearden alleged that its MOVA Contour software was obtained by Digital Domain through a “rogue” employee, and that both Disney and Digital Domain knew they did not have the right to use the program.Rearden LLC sued Disney for a whopping $38 million in damages.Credit: Video Screenshot, ‘Beauty and the Beast’, DisneyRelated: Disney’s ‘Beauty and the Beast’ Announces Stars for Reimagined RevivalIt took years, but in the end, a jury agreed with Rearden. However, the company was not awarded the $38 million it was seeking. The judge fined Disney $600,000, and the company paid just over $300,000, but Disney appealed the decision.The Judgment ReversedIn August 2024, district judge Jon S. Tigar reversed his decision, ruling that Disney had not knowingly committed copyright infringement when it used Rearden’s technology.Disney had appealed the initial ruling, and requested the judge grant its motion for judgment as a matter of law. Judge Tigar determined that Rearden LLC had failed to prove that Disney was liable for the infringement. Digital Domain (DD3) was the company that had illegally used the software, and Disney had no way of knowing DD3 didn’t have the right to use it.Credit: Video Screenshot, ‘Beauty and the Beast’, DisneyRelated: Disney Settles Huge Copyright Lawsuit Over Controversial Disney+ SeriesRearden LLC appealed the judge’s decision to overturn the initial verdict.Appeals Court Overturns ReversalOn September 11, 2o25, the Ninth Circuit Court of Appeals overturned Judge Tigar’s decision to throw out the initial ruling. The panel determined that Disney could have stopped Digital Domain (DD3) from using the illegally obtained MOVA Contour Software.According to a report from Courthouse News Service:U.S. Circuit Judge Lucy Koh found in her opinion that a 2023 jury trial offered enough evidence to conclude Disney knew its contractor made unauthorized copies of facial motion capture software owned by San Francisco technology incubator Rearden. The three-judge appeals panel ruled that Disney vicariously committed copyright infringement by allowing its contractor, Digital Domain 3.0 (DD3), to use Rearden’s software.Credit: Video Screenshot, ‘Beauty and the Beast’, DisneyRelated: Disney Takes Huge Marvel ‘Avengers’ Win, Lawsuit DismissedIn their ruling, the panel stated that Disney had the “practical ability” to supervise DD3 and control their “infringing conduct.”After the ruling, Rearden LLC CEO Steve Perlman issued a statement, thanking the court for reinstating the initial 2023 ruling. Disney has not responded to the ruling. It is possible Disney could continue to fight the verdict and take its appeal to higher courts.What do you think of the back-and-forth nature of the lawsuit and this latest decision? Do you think Disney should continue to fight, or just pay the amount they were fined? Do you think Disney has a responsibility to make sure that the companies it works with are doing everything legally and by the book? Share your thoughts with us in the comments!The post Judge Reverses Decision, Disney Loses Major ‘Beauty and the Beast’ Lawsuit appeared first on Inside the Magic.