In a recent development, a California federal jury has found that Disney is liable to pay damages to Rearden, a digital-effects company. The basis for the claim is Disney’s copyright infringement of Rearden’s special-effects software in the creation of Disney’s 2017 live-action film, “Beauty and the Beast.” The court-ordered amount for damages is $250,638, along with a recommended disgorgement of profits amounting to $345,098. This result demonstrates a strict approach by judicial authorities in dealing with cases of copyright violations by enterprises.
While actual damages are generally compensatory in nature and are awarded in an amount sufficient to replace what was lost, the recommendation for disgorgement of profits is noteworthy. Disgorgement is a remedy whereby a party who profits from illegal or wrongful acts is required by law to turn over those ill-gotten gains. This decision sends a clear message to corporations about the high penalties accompanying such infringement of rights.
For a comprehensive understanding, a detailed review of the case proceedings provides insight into the arguments raised by both sides and the subsequent judicial analysis.