Ninth Circuit Reinstates Ruling Holding Disney Liable in 'Beauty and the Beast' VFX Case

The appeals court found Disney had the practical ability to control its contractor, reviving a jury’s vicarious-infringement finding.

Overview

On September 11, 2025, a three-judge Ninth Circuit panel led by Judge Lucy Koh overturned a 2024 district-court reversal in the Rearden LLC case.
The court held Disney vicariously liable because it had the practical ability to supervise Digital Domain 3.0’s use of Rearden’s MOVA Contour software.
A 2017 lawsuit by Rearden claimed unauthorized use of its facial motion-capture technology, seeking $38 million in damages.
A 2023 jury sided with Rearden and the court assessed a $600,000 award, and Disney ultimately paid just over $300,000 before appealing.
Rearden CEO Steve Perlman thanked the court after the decision, and Disney had no public comment as the company considers its options for further review.