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No. 10670000
United States Court of Appeals for the Ninth Circuit
Rearden, LLC v. Walt Disney Pictures
No. 10670000 · Decided September 11, 2025
No. 10670000·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
September 11, 2025
Citation
No. 10670000
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
REARDEN, LLC; REARDEN No. 24-3970
MOVA, LLC,
D.C. No.
4:17-cv-04006-
Plaintiffs - Appellants,
JST
v.
WALT DISNEY PICTURES, a OPINION
California corporation,
Defendant - Appellee.
Appeal from the United States District Court
for the Northern District of California
Jon S. Tigar, District Judge, Presiding
Argued and Submitted June 4, 2025
San Francisco, California
Filed September 11, 2025
Before: Consuelo M. Callahan, Bridget S. Bade, and Lucy
H. Koh, Circuit Judges.
Opinion by Judge Koh
2 REARDEN, LLC V. WALT DISNEY PICTURES
SUMMARY*
Copyright
The panel affirmed in part and reversed in part the
district court’s judgment as a matter of law in favor of
Defendant Walt Disney Pictures (“Disney”) after a two-
week jury trial involving a claim of vicarious copyright
infringement brought by Plaintiffs Rearden, LLC and
Rearden MOVA, LLC (collectively, “Rearden”). Rearden
alleged that one of Disney’s visual effects contractors,
Digital Domain 3.0 (“DD3”), made unauthorized copies of
Rearden’s copyrighted facial motion capture software
during the production of Disney’s 2017 film Beauty and the
Beast. The jury found Disney vicariously liable for copyright
infringement, awarded Rearden actual damages, and
returned an advisory verdict on the issue of disgorgement of
profits. Post-trial, the district court granted Disney judgment
as a matter of law, concluding that Rearden had failed to
introduce sufficient evidence at trial of Disney’s practical
ability to stop or limit the directly infringing conduct.
The panel reversed the district court’s grant of judgment
as a matter of law in favor of Disney, concluding that
Rearden had introduced legally sufficient evidence at trial
for a jury to conclude that Disney had the practical ability to
stop or limit DD3’s infringing conduct.
The panel affirmed the district court’s ruling striking
Rearden’s jury demand on the issue of disgorgement of
profits, holding that the Copyright Act provides no statutory
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
REARDEN, LLC V. WALT DISNEY PICTURES 3
jury trial right on the disgorgement of profits remedy. The
panel also concluded that the district court committed no
reversible procedural error by striking Rearden’s jury
demand mid-trial.
The panel also affirmed two of the district court’s pretrial
evidentiary rulings, concluding that the district court did not
abuse its discretion in excluding portions of the testimony of
Rearden’s damages expert or in excluding evidence of an
indemnification agreement between DD3 and Disney.
COUNSEL
Mark Carlson (argued), Steve W. Berman, Garth
Wojtanowicz, and Jerrod C. Patterson, Hagens Berman
Sobol Shapiro LLP, Seattle, Washington; Rio Pierce,
Hagens Berman Sobol Shapiro LLP, Berkeley, California;
for Plaintiffs-Appellees.
Kelly M. Klaus (argued), Stephanie G. Herrera, Blanca F.
Young, and Shannon G. Aminirad, Munger Tolles & Olson
LLP, San Francisco, California; John W. Spiegel, Anne
Conley, and Rowley J. Rice, Munger Tolles & Olson LLP,
Los Angeles, California; for Defendant-Appellee.
4 REARDEN, LLC V. WALT DISNEY PICTURES
OPINION
KOH, Circuit Judge:
This appeal arises from a claim of vicarious copyright
infringement brought by Plaintiffs-Appellants Rearden,
LLC and Rearden MOVA, LLC (collectively, “Rearden”)
against Defendant-Appellee Walt Disney Pictures
(“Disney”). Rearden alleges that one of Disney’s visual
effects contractors, Digital Domain 3.0 (“DD3”), made
unauthorized copies of Rearden’s copyrighted MOVA
Contour Reality Capture software (“MOVA”) during the
production of Disney’s 2017 live-action Beauty and the
Beast film. After a two-week trial, a jury found Disney liable
for vicarious copyright infringement, awarded Rearden
$250,638 in actual damages, and returned an advisory
verdict that Disney’s profits attributable to infringement
amounted to $345,098. The district court initially adopted
the advisory verdict but later granted Disney’s motion for
judgment as a matter of law (“JMOL”), concluding that
Rearden had failed to introduce legally sufficient evidence
at trial that Disney had the practical ability to supervise
DD3’s directly infringing conduct.
On appeal, Rearden argues that the district court erred in
granting Disney’s motion for JMOL and that it is entitled to
a new jury trial on the issue of apportionment of profits. For
the reasons below, we affirm in part, reverse in part, and
remand.
REARDEN, LLC V. WALT DISNEY PICTURES 5
I. BACKGROUND AND PROCEDURAL
HISTORY
A. Factual Background
i. The MOVA Copyright
MOVA Contour Reality Capture is a facial motion
capture system used to record acting performances and
translate facial motion into digital files used to animate the
faces of computer graphics (“CG”) film characters. The
MOVA system is made up of physical components
(including an array of cameras, lights, and facial makeup) as
well as a software program that directs the operation of the
physical components and processes the captured camera
data. The MOVA software program is the copyrighted work
at issue in this appeal.
Rearden, LLC, a technology incubator founded by Steve
Perlman, began developing MOVA in 2000 and first
publicized the technology at a trade show in 2006. Between
2006 and 2012, MOVA technology was used in 17 films,
including Disney’s TRON: Legacy, Pirates of the
Caribbean: On Stranger Tides, John Carter, and The
Avengers. Over time, Rearden secured various intellectual
property protections for its MOVA technology, including a
copyright on the MOVA software registered in February
2016.
Between 2007 and 2013, the MOVA assets were
transferred to various Rearden-affiliated companies. 1 Of
most relevance to this appeal, in February 2013, at the urging
1
The full ownership history of the MOVA assets is provided in
Shenzhenshi Haitiecheng Science & Technology Co. v. Rearden LLC,
No. 15-CV-00797, 2017 WL 3446585, at *1-8 (N.D. Cal. Aug. 11,
2017), aff’d, 823 F. App’x 455 (9th Cir. 2020).
6 REARDEN, LLC V. WALT DISNEY PICTURES
of Perlman, the MOVA assets were transferred to a newly
organized company called MO2, LLC (“MO2”). MO2 was
organized and managed by a former Rearden employee,
Gregory LaSalle, who had operated the MOVA system on
previous studio projects. Shortly thereafter, against
Perlman’s wishes, LaSalle surreptitiously organized a sale of
the MOVA assets from MO2 to a DD3 affiliate, Shenzhenshi
Haitiecheng Science & Technology Co. (“SHST”). LaSalle
then joined DD3 and continued operating the MOVA
system.
In May 2013, Perlman attempted to contact DD3 about
the MOVA assets, but DD3 denied having them. However,
in 2014, Perlman became aware that MOVA technology was
being considered for the Academy of Motion Pictures Arts
and Sciences’ (“Academy”) Technical Achievement Award.
Perlman was contacted by a member of the award committee
for an interview, during which he was asked about the use of
MOVA on Disney’s Guardian of the Galaxy film. Perlman
had not known that MOVA had been used on the film and
later investigated the film credits, which stated: “Facial
capture by MOVA, a division of Digital Domain 3.0.”
MOVA eventually received the Technical Achievement
Award, and the Academy named as awardees the four people
who it felt contributed most to MOVA’s development,
including LaSalle. Perlman filed an appeal with the
Academy regarding the proper attribution of the award.
Perlman argued that he and another team member should
have been named as awardees instead of LaSalle because
they had contributed significantly more to MOVA’s
development. On February 6, 2015, The Hollywood
Reporter published an article about the appeal, in which
Perlman explicitly stated that he had never licensed DD3 to
use the MOVA technology.
REARDEN, LLC V. WALT DISNEY PICTURES 7
A few weeks later, on February 20, 2015, SHST sued
Rearden, seeking a declaration that it owned the MOVA
assets. Complaint, Shenzhenshi Haitiecheng, No. 15-CV-
00797, Dkt No. 1. Rearden countersued, seeking a
declaration that it owned the MOVA assets. Answer and
Counterclaims, Shenzhenshi Haitiecheng, No. 15-CV-
00797, Dkt No. 21.
In August 2017, after a bench trial, the district court
issued its decision. Shenzhenshi Haitiecheng, 2017 WL
3446585 (N.D. Cal. Aug. 11, 2017). Ultimately, the district
court determined that MO2’s sale of the MOVA assets to
SHST was ineffective because LaSalle had been an
employee of Rearden when MO2 acquired the assets. See id.
at *8. Because of LaSalle’s employment agreement with
Rearden, the MOVA assets had transferred to Rearden, and
LaSalle was therefore not authorized to conduct the sale to
SHST on MO2’s behalf. Id. at *8-9. Accordingly, the court
determined that DD3 never had the right to use MOVA and
ordered DD3 to return all MOVA assets to Rearden. Id. at
*9-10.
ii. The Beauty and the Beast Production
While the MOVA ownership dispute was being litigated,
DD3 continued to use MOVA technology on various studio
projects. In March 2015, Disney engaged DD3 as a vendor
for visual effects work on Disney’s live-action remake of the
1991 animated film Beauty and the Beast (“BATB”).
Disney’s contract with DD3 gave Disney broad control
over DD3’s work product and process. Among other things,
Disney was entitled to weekly progress reports, had the right
to review all works in progress and request changes, and
retained all approvals and controls. The contract also granted
Disney the right to terminate the contract in the event of
8 REARDEN, LLC V. WALT DISNEY PICTURES
copyright infringement. DD3 agreed to indemnify Disney
for any breach of DD3’s representations and warranties,
which included a warranty that its work would not infringe
any copyrights.
Principal photography for BATB occurred from May to
August 2015. Filming involved nine MOVA facial capture
sessions, the final of which was a reshoot that took place in
June 2016. Contractor Steve Gaub, designated as Disney’s
“Picture Representative” in the DD3 contract, attended all
MOVA facial capture sessions and reviewed MOVA
software output. Bill Condon, hired by Disney as the film’s
director, also attended all MOVA sessions to direct the
actors and was part of the team that reviewed MOVA output
and selected shots for further processing.
During the MOVA facial capture sessions, DD3
employees operated the physical system and the MOVA
software, which processed captured camera data into digital
files. These files were then rendered on computers present
on-set, allowing live review by the director and others. At
trial, Rearden presented evidence showing a copyright notice
reading “Copyright 2016 – Rearden LLC” appeared on these
on-set computers each time a new data file was loaded into
the on-set file player.
BATB was released on March 17, 2017, and ultimately
earned approximately $215 to $225 million in profits.
B. Procedural History
In July 2017, Rearden filed suit against Disney alleging,
as relevant here, vicarious and contributory copyright
infringement. Rearden’s theory of direct infringement was
that each time DD3 used MOVA to capture a four-second
shot on BATB, its computers made an unauthorized copy of
REARDEN, LLC V. WALT DISNEY PICTURES 9
the MOVA software program. Rearden alleged that Disney
was vicariously liable for DD3’s infringing conduct because
Disney had contracted with DD3 to provide facial capture
services using MOVA to create CG characters for BATB.
Rearden also alleged that Disney was contributorily liable
for DD3’s infringing conduct because Disney had actual
knowledge of DD3’s infringement and induced, caused, and
materially contributed to the infringement.
In July 2023, after the close of fact discovery, Disney
filed a motion for summary judgment. The district court
granted summary judgment to Disney on the contributory
infringement claim, concluding that Rearden lacked
evidence that Disney had actual or constructive knowledge
of DD3’s infringement. The district court explained that the
resolution of the MOVA ownership dispute occurred nearly
five months after BATB was released in theaters and that, as
a nonparty to that litigation, Disney “was not adequately
positioned to ascertain the veracity of Rearden’s ownership
claim” and thus lacked knowledge of the direct
infringement. However, the district court denied summary
judgment to Disney on the vicarious infringement claim for
two reasons. First, the district court noted that “the contract
between DD3 and Disney secures for Disney considerable
control over DD3’s services such that it is possible that
Disney could have, as a practical matter, taken affirmative
steps to stop or limit DD3’s use of MOVA.” Second, the
district court explained that the involvement of Disney
representatives in the selection of DD3 as a vendor and in
the facial motion capture process “creates a genuine dispute
of material fact as to whether Disney could have limited or
stopped DD3’s use of MOVA during the production
process.” Additionally, having previously granted Disney’s
motion to exclude the testimony of Rearden’s actual
10 REARDEN, LLC V. WALT DISNEY PICTURES
damages expert, the district court granted Disney’s motion
for summary judgment on Rearden’s claim for actual
damages.
As the parties prepared for trial on the vicarious liability
claim, the district court made several pretrial evidentiary
rulings relevant to this appeal. First, the district court granted
Disney’s motion to exclude portions of the testimony of
Rearden’s damages expert regarding apportionment of
profits under Federal Rule of Evidence 702. Second, the
district court granted Disney’s motion in limine to exclude
evidence that Disney’s contract with DD3 included an
indemnification provision under which DD3 agreed to
indemnify Disney for liability arising from, among other
things, copyright infringement under Federal Rule of
Evidence 403.
As trial approached, the court also considered which
questions concerning damages would be submitted to the
jury. Initially, Disney had consented to try all damages
questions, including actual damages and apportionment of
profits, to a jury. However, after the court granted summary
judgment to Disney as to Rearden’s actual damages claim,
Disney argued for the first time that Rearden lacked the right
to a jury trial on the issue of disgorgement of profits. Several
weeks before trial, Disney filed a motion to strike the jury
demand, arguing that neither the Copyright Act nor the
Seventh Amendment created the right to a jury trial. Rearden
opposed the motion on its merits and, in the alternative,
requested an advisory jury. Shortly before trial, on
November 29, 2023, the district court granted Rearden’s
motion to reconsider its grant of summary judgment to
Disney on the actual damages claim and allowed Rearden to
proceed to trial on that claim. As part of this ruling, the
REARDEN, LLC V. WALT DISNEY PICTURES 11
district court denied Disney’s motion to strike Rearden’s
jury demand “as moot.”
On December 6, 2023, the case proceeded to a jury trial
on Rearden’s sole remaining claim of vicarious copyright
infringement. Mid-trial, on December 14, 2023, the district
court announced sua sponte that it had erred in denying as
moot the motion to strike the jury demand as to
disgorgement of profits. At this point in the trial, Rearden
had presented nearly all of its case-in-chief but had not yet
called its damages expert. The same day, the district court
issued a written decision granting Disney’s motion to strike
the jury demand on Rearden’s claim for disgorgement of
profits. Rearden LLC v. Walt Disney Co., No. 17-CV-04006,
2023 WL 9187385 (N.D. Cal. Dec. 14, 2023). The district
court concluded that “[n]either the language of 17 U.S.C. §
504(b) nor the Seventh Amendment to the U.S. Constitution
give Rearden the right to a jury on this claim.” Id. at *1. The
district court granted Rearden’s alternative request to
empanel an advisory jury on this claim under Federal Rule
of Civil Procedure 39(c). Id. at *2.
After a two-week trial, the jury returned a verdict that
Disney was vicariously liable for DD3’s infringement of the
MOVA copyright. The jury awarded Rearden $250,638 in
actual damages and returned an advisory verdict that
Disney’s profits attributable to infringement amounted to
$345,098. The district court adopted the advisory verdict and
entered judgment in favor of Rearden.
However, in August 2024, the district court granted
Disney’s motion for JMOL, concluding that Rearden failed
to introduce legally sufficient evidence at trial that Disney
had the practical ability to stop or limit DD3’s infringing
conduct. Rearden LLC v. Walt Disney Co., No. 17-CV-
12 REARDEN, LLC V. WALT DISNEY PICTURES
04006, 2024 WL 3956318 (N.D. Cal. Aug. 26, 2024)
(hereinafter the “JMOL Order”). As summarized by the
district court, “Disney’s position rests on the argument that
in order for a defendant to have the practical ability to limit
or stop infringing conduct, it must have the practical ability
to observe the conduct and recognize when that conduct is
infringing. In other words, in order to control infringing
conduct, one must be able to identify the infringing conduct.”
Id. at *5. The district court explained that Disney’s position
was supported by three Ninth Circuit cases: A&M Records,
Inc. v. Napster, Inc. (“Napster”), 239 F.3d 1004 (9th Cir.
2001), as amended (Apr. 3, 2001); Perfect 10, Inc. v.
Amazon.com, Inc. (“Amazon”), 508 F.3d 1146 (9th Cir.
2007); and VHT Inc. v. Zillow Group, Inc., 918 F.3d 723 (9th
Cir. 2019). Id. at *5-6. Applying these cases, the district
court concluded that “Rearden failed to introduce legally
sufficient evidence at trial that Disney had the practical
ability to identify, and therefore supervise or control,
whether its vendors such as DD3 were infringing copyright.”
Id. at *7.
The district court subsequently entered judgment in
favor of Disney, and shortly thereafter Rearden filed this
appeal.
II. JURISDICTION AND STANDARD OF
REVIEW
We have jurisdiction to review the district court’s final
judgment under 28 U.S.C. § 1291. We review the district
court’s grant of JMOL de novo. Gray v. Hudson, 28 F.4th
87, 95 (9th Cir. 2022). The district court may grant JMOL if
“a reasonable jury would not have a legally sufficient
evidentiary basis to find for the party on that issue.” Fed. R.
Civ. P. 50(a)(1). JMOL is appropriate only if “the evidence,
REARDEN, LLC V. WALT DISNEY PICTURES 13
construed in the light most favorable to the nonmoving party,
permits only one reasonable conclusion, and that conclusion
is contrary to that of the jury.” White v. Ford Motor Co., 312
F.3d 998, 1010 (9th Cir. 2002) (citation omitted).
“Whether a party is entitled to a jury trial is a question of
law that we review de novo.” Ross Dress for Less, Inc. v.
Makarios-Oregon, LLC, 39 F.4th 1113, 1118 (9th Cir.
2022). “We review a district court’s decision to exclude
expert testimony for abuse of discretion.” Tekoh v. County
of Los Angeles, 75 F.4th 1264, 1265 (9th Cir. 2023) (citing
United States v. Redlightning, 624 F.3d 1090, 1110 (9th Cir.
2010)). We review a district court’s evidentiary rulings
under Federal Rule of Evidence 403 for abuse of discretion.
United States v. Sullivan, 131 F.4th 776, 786 (9th Cir. 2025)
(citing United States v. Tsarnaev, 595 U.S. 302, 322-23
(2022)).
III. VICARIOUS COPYRIGHT LIABILITY
To prevail on a claim of vicarious liability for copyright
infringement, a plaintiff must establish that the defendant
has “(1) the right and ability to supervise the infringing
conduct and (2) a direct financial interest in the infringing
activity.” VHT, 918 F.3d at 746 (quoting Perfect 10, Inc. v.
Giganews, Inc., 847 F.3d 657, 673 (9th Cir. 2017)); see also
Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., 545
U.S. 913, 930 (2005) (“One . . . infringes vicariously by
profiting from direct infringement while declining to
exercise a right to stop or limit it.” (citation omitted)). We
have explained that the first element, i.e., the “control
element,” requires “both a legal right to stop or limit the
directly infringing conduct, as well as the practical ability to
do so.” VHT, 918 F.3d at 746 (quoting Amazon, 508 F.3d at
1173).
14 REARDEN, LLC V. WALT DISNEY PICTURES
The district court determined that Rearden failed to
produce legally sufficient evidence at trial to support the
jury’s finding on the control element, specifically
concluding that Rearden failed to establish “that Disney had
the practical ability to identify, and therefore supervise or
control, whether its vendors such as DD3 were infringing
copyright.” JMOL Order, at *7. This ruling was premised on
Disney’s argument “that in order for a defendant to have the
practical ability to limit or stop infringing conduct, it must
have the practical ability to observe the conduct and
recognize when that conduct is infringing. In other words, in
order to control infringing conduct, one must be able to
identify the infringing conduct.” Id. at *5. Although Disney’s
position is not without some support in our case law, we
conclude that the district court erred in granting JMOL here.
We first considered the issue of vicarious liability for
copyright infringement in Fonovisa, Inc. v. Cherry Auction,
Inc., 76 F.3d 259 (9th Cir. 1996). In Fonovisa, we held that
a swap meet operator plausibly stated a claim for vicarious
liability based on vendors’ sale of counterfeit records. Id. at
262-64. However, we did not explicitly consider the
defendant’s ability to identify the vendors’ direct
infringement, as “[t]here [was] no dispute for purposes of
th[e] appeal that [the defendants] were aware that vendors in
their swap meet were selling counterfeit recordings.” Id. at
261.
We first had occasion to address whether a defendant
must have the ability to identify direct copyright
infringement to be held vicariously liable several years later
in Napster. In Napster, plaintiff copyright owners brought
claims of vicarious copyright infringement against Napster,
the operator of a peer-to-peer music-file sharing platform.
239 F.3d at 1011. Napster’s file-sharing service allowed
REARDEN, LLC V. WALT DISNEY PICTURES 15
registered users to make MP3 music files stored on
individual hard drives available for copying by other Napster
users. Id. We affirmed the district court’s grant of a
preliminary injunction, concluding in relevant part that the
plaintiffs had demonstrated that they would likely succeed
in establishing that Napster had the right and ability to
supervise its users’ conduct. Id. at 1023-24. We explained
that the control element was likely met because Napster
“ha[d] the ability to locate infringing material listed on its
search indices, and the right to terminate users’ access to the
system.” Id. at 1024.
However, we ordered the district court to narrow the
scope of the preliminary injunction because we concluded
that the court had “failed to recognize that the boundaries of
the premises that Napster ‘controls and patrols’ are limited.”
Id. at 1023. Because “the Napster system does not ‘read’ the
content of indexed files, other than to check that they are in
the proper MP3 format,” id. at 1024, we instructed the
district court to,“[i]n crafting the injunction on remand, . . .
recognize that Napster’s system does not currently appear to
allow Napster access to users’ MP3 files,” id. at 1027. In
short, we determined that Napster could be held vicariously
liable for copyright infringement, but only for infringement
that it could reasonably identify and remove from the
Napster platform.
In several subsequent cases involving defendants
operating technological platforms, we similarly limited the
scope of vicarious liability to infringement that the
defendants could reasonably identify and remove. In
Amazon, we considered a copyright claim brought against
Google that alleged Google was vicariously liable for its
practice of providing links to infringing full-size images on
third party websites. 508 F.3d at 1154. Reviewing the denial
16 REARDEN, LLC V. WALT DISNEY PICTURES
of a preliminary injunction, we agreed with the district
court’s conclusion that the plaintiff was unlikely to prevail
on its vicarious liability claim. Id. at 1173-75. The district
court had found that Google’s supervisory power over third
party websites was limited because “Google’s software lacks
the ability to analyze every image on the [I]nternet, compare
each image to all the other copyrighted images that exist in
the world . . . and determine whether a certain image on the
web infringes someone’s copyright,” and because the
technological measures Google could implement to block
access to infringing images were “not workable.” Id. at 1174
(alteration in original) (quoting Perfect 10 v. Google, Inc.,
416 F. Supp. 2d 828, 858 (C.D. Cal. 2006)). We held that
these findings were “not clearly erroneous,” explaining that
“[w]ithout image-recognition technology, Google lacks the
practical ability to police the infringing activities of third-
party websites.” Id. This, we explained, was what
“distinguishes Google from the defendants held liable in
Napster and Fonovisa. . . . Napster had the ability to identify
and police infringing conduct by searching its index for song
titles. . . . . [The] swap meet operator [in Fonovisa] had the
ability to identify and police infringing activity by patrolling
its premises.” Id. (citations omitted).
Similarly, in VHT, we affirmed the district court’s grant
of judgment notwithstanding the verdict to Zillow, the
operator of an online real estate marketplace, on a claim of
vicarious liability brought by VHT, a real estate photography
studio. 918 F.3d at 730, 746. VHT alleged that Zillow was
vicariously liable for the copyright infringement of brokers,
agents, and listing services who uploaded photos to Zillow’s
platform in violation of their licensing agreements with
VHT. Id. at 730. We concluded that “there was insufficient
evidence that Zillow had the technical ability to screen out
REARDEN, LLC V. WALT DISNEY PICTURES 17
or identify infringing VHT photos among the many photos
that users saved or uploaded daily,” and that “[o]nce VHT
photos were uploaded to [Zillow’s platform] with
appropriate certification of rights, ferreting out claimed
infringement . . . was beyond hunting for a needle in a
haystack.” Id. at 746.
In our view, this case is more similar to Napster and
Fonovisa than it is to Amazon or VHT. Construing the
evidence in the light most favorable to Rearden, see White,
312 F.3d at 1010, there was a legally sufficient evidentiary
basis for the jury to find that Disney had the practical ability
to supervise and control DD3’s infringing conduct.
On appeal, Rearden argues that it was legal error for the
district court to impose an “ability to identify” infringement
requirement to its claim of vicarious liability. We need not
and do not resolve the legal question of whether vicarious
liability always requires proof that the defendant has the
practical ability to “identify” or “recognize” specific conduct
as infringing. Even assuming arguendo that such a showing
is required, we conclude that Disney is not entitled to JMOL
in this case. We note, however, that actual knowledge is not
an element of vicarious copyright infringement. See, e.g.,
Grokster, 545 U.S. at 930 n.9 (“[V]icarious liability
. . . allows imposition of liability when the defendant profits
directly from the infringement and has a right and ability to
supervise the direct infringer, even if the defendant initially
lacks knowledge of the infringement.” (emphasis added)). To
be sure, there is a difference between actual knowledge of
direct infringement and an opportunity to identify direct
infringement. But “[t]he concept of vicarious copyright
liability was developed in the Second Circuit as an
outgrowth of the agency principles of respondeat superior.”
Fonovisa, 76 F.3d at 261-62 (citing Shapiro, Bernstein &
18 REARDEN, LLC V. WALT DISNEY PICTURES
Co. v. H.L. Green Co., 316 F.2d 304 (2d Cir. 1963)). A
narrow focus on the defendant’s ability to identify specific
acts of infringement is in some tension with the historical
roots of vicarious liability, as respondeat superior liability is
premised on the relationship between the defendant and the
tortfeasor, rather than the relationship between the defendant
and the tort. See Columbia Pictures Indus., Inc. v. Fung, 710
F.3d 1020, 1046 (9th Cir. 2013) (“[T]o the degree [the
Digital Millenium Copyright Act’s safe harbor provision]
had its origin in vicarious liability concepts, those concepts
rest on the overall relationship between the defendant and
the infringers, rather than on specific instances of
infringement.” (internal citations omitted)); Rams v. Def Jam
Recordings, Inc., 202 F. Supp. 3d 376, 384 (S.D.N.Y. 2016)
(“Unlike contributory liability, vicarious liability rests not
on the defendant’s relationship to the direct infringement but
rather on the defendant’s relationship to the direct infringer.”
(citation omitted)).
Disney argues that it lacked the practical ability to
identify DD3’s infringement for two reasons. First, Disney
argues that it is impractical to require studios to conduct due
diligence on every piece of software used by vendors on
large-scale productions, such as BATB, and that it had no
specific reason to question DD3’s authorization to use
MOVA here. Second, Disney argues that even if it had
conducted due diligence to confirm DD3’s authorization to
use MOVA, it would have had no way to recognize that
DD3’s use of the software was infringing. Based on the
evidence presented at trial, however, the jury could have
reasonably rejected these arguments and concluded that
Disney had the practical ability to identify DD3’s use of
MOVA as potentially infringing.
REARDEN, LLC V. WALT DISNEY PICTURES 19
A. Practical Ability to Supervise DD3
Disney first argues that it is entitled to JMOL on the
control element because it had no practical ability to
supervise all its BATB vendors and no specific reason to
investigate DD3’s authorization to use MOVA. We disagree.
Uncontroverted evidence introduced at trial showed that
at least two Disney representatives—director Bill Condon
and visual effects supervisor Steve Gaub—were physically
present and actively participated in all MOVA capture
sessions. From this evidence, the jury could reasonably
conclude that DD3’s infringing use of MOVA was within
the “premises that [Disney] controlled and patrolled.”
Fonovisa, 76 F.3d at 262. And Disney’s contract with DD3
clearly gave it all necessary legal rights to supervise and
control DD3’s use of MOVA. Gaub, along with other Disney
representatives, had the contractual rights to require DD3 to
turn over all work product upon request and the right to
terminate the contract for copyright infringement.
Despite this actual supervision and these broad
contractual rights, Disney argues that it had no reason to
believe the use of MOVA was infringing and that, in the
absence of such a reason, identifying DD3’s direct
infringement was “beyond hunting for a needle in a
haystack.” VHT, 918 F.3d at 746. To be sure, it was
undisputed at trial that DD3 represented to Disney that it had
all necessary rights to use the technology on the film and that
its services would not infringe any copyrights. It was also
undisputed that Rearden did not inform Disney that Rearden
believed DD3’s use of MOVA was infringing until after
BATB had been released. However, the defendant, not the
copyright owner, bears the burden of affirmatively
“guard[ing] against the infringement.” Shapiro, 316 F.2d at
20 REARDEN, LLC V. WALT DISNEY PICTURES
308. “Turning a blind eye to detectable acts of infringement
for the sake of profit gives rise to liability.” Napster, 239
F.3d at 1023.
The jury could have reasonably concluded that, even in
the absence of a specific reason to question DD3’s
authorization to use MOVA, Disney had the practical ability
to investigate whether DD3 had the necessary rights to
operate its core software. Disney argues that it used over 200
vendors on BATB and that it would have been impractical to
conduct due diligence to confirm that all its vendors had the
necessary rights to operate every piece of software on the
production. However, Disney’s ability to supervise this
volume of vendors is a quintessential jury question that the
jury could have reasonably resolved against Disney. Cf.
Fonovisa, 76 F.3d at 262-63 (concluding that copyright
plaintiffs had stated a claim for vicarious liability against a
swap meet operator even though there were typically over
900 vendors selling goods 2 ); see also Adobe Sys. Inc. v.
Canus Prods., Inc., 173 F. Supp. 2d 1044, 1053-55 (C.D.
Cal. 2001) (concluding that a trade show operator’s ability
to “root out the infringing conduct” was a “triable issue of
fact” where there were up to 450 vendor booths).
Moreover, Disney used only four visual effects vendors
on BATB, of which DD3 was one of the two largest. Disney
paid DD3 $31 million for its services, almost half of the
film’s visual effects budget. Additionally, Rearden
introduced evidence at trial showing that other motion
picture studios had contacted Perlman in the past to conduct
due diligence and confirm that their vendors had all
necessary rights to operate the MOVA software. The jury
2
Brief for Appellee at 4, Fonovisa, Inc. v. Cherry Auction, Inc., 76 F.3d
259 (9th Cir. 1996) (No. 94-15717), 1994 WL 16014410, at *4.
REARDEN, LLC V. WALT DISNEY PICTURES 21
certainly could have reasonably determined that Disney, too,
had the practical ability to conduct due diligence on the core
software used by one of its largest vendors.
But the jury need not have relied only on Disney’s
general practical ability to supervise and police its vendors.
At trial, Rearden also introduced two pieces of evidence
showing that Disney had reason to further investigate DD3’s
use of MOVA specifically. First, Rearden introduced
evidence of the public dispute over the Academy Award’s
Technical Achievement Award, including the article
published in The Hollywood Reporter in which Perlman
specifically claimed that DD3 lacked a license to use the
technology. That article, published just a month before
Disney entered into its BATB contract with DD3, reported
that there was “a bitter disagreement over licensing of the
[MOVA] technology” and that Perlman claimed he had
“never granted Digital Domain a license” for MOVA’s use
on Disney’s Guardians of the Galaxy movie. A reasonable
jury could have inferred that Disney knew or should have
known of the ongoing intellectual property dispute
concerning the MOVA technology.
Second, Rearden introduced evidence at trial that a click-
through Rearden copyright notice appeared on computer
screens that were used to process data during the MOVA
capture sessions attended by Condon and Gaub. It is true that
Gaub and Condon testified that they did not actually see
Rearden’s copyright notice and only reviewed footage that
had this copyright notice removed. However, the jury could
have found this testimony not credible. Moreover, actual
knowledge is not a required element of vicarious liability.
See, e.g., Grokster, 545 U.S. at 930 n.9; 3 Melville B.
Nimmer & David Nimmer, Nimmer on Copyright § 12.04
(2025) (“Notably lacking from the [elements of vicarious
22 REARDEN, LLC V. WALT DISNEY PICTURES
liability] is knowledge: Lack of knowledge that the primary
actor is actually engaged in infringing conduct is not a
defense . . . .”). Condon and Gaub could have seen the notice
if they had diligently exercised their contractual rights to
review DD3 work product. See Napster, 239 F.3d at 1023
(“To escape imposition of vicarious liability, the reserved
right to police must be exercised to its fullest extent.”).
Construing all evidence in the light most favorable to
Rearden as the law requires on JMOL, the jury could have
reasonably determined that Disney had the practical ability
to see this notice and that this notice would have given
Disney another concrete reason to investigate DD3’s
authorization to use MOVA.
B. Practical Ability to Recognize DD3’s
Conduct as Infringing
Disney also argues it is entitled to JMOL on the control
element because, even if it had further investigated DD3’s
right to use MOVA, it could not have recognized the use as
infringement because the underlying MOVA ownership
dispute was not resolved until after the final use of MOVA
on BATB. We conclude that MOVA’s disputed copyright
ownership does not insulate Disney from liability here.
Again, vicarious liability does not require actual or even
constructive knowledge of infringement. See, e.g., Grokster,
545 U.S. at 930 n.9. Disney argues that there is a difference
between actual knowledge and the opportunity to recognize
infringement. But even so, our case law has never suggested
that, to be held vicariously liable for copyright infringement,
a defendant must have an opportunity to know, with
certainty, that the conduct in question infringes copyright. In
Napster, we concluded that Napster had the practical ability
to identify infringement based on user-uploaded song titles,
REARDEN, LLC V. WALT DISNEY PICTURES 23
despite the inherent difficulties in confirming whether those
uploads were in fact infringing. See 239 F.3d at 1027
(concluding that “Napster may be vicariously liable when it
fails to affirmatively use its ability to patrol its system and
preclude access to potentially infringing files listed in its
search index” (emphasis added)). Indeed, we explicitly
recognized that Napster may not be able to identify
infringing content with certainty, given that uploaded files
on the platform “are user-named and may not match
copyrighted material exactly.” Id. at 1024. Nevertheless, we
concluded that “file name indices . . . are within the
‘premises’ that Napster has the ability to police.” Id.
Here, too, the jury could have reasonably determined that
Disney had the practical ability to identify that DD3’s use of
MOVA was potentially infringing. Had Disney reasonably
investigated DD3’s authorization to use MOVA when it
initially contracted with DD3 in March 2015, it could have
discovered that, since February 2015, DD3 had been
involved in active public litigation with Rearden over
ownership of the MOVA assets. Additionally, Disney could
have discovered that Perlman had publicly claimed, in the
February 2015 Hollywood Reporter article (which discussed
an Academy Award related to technology used on Disney’s
own film, Guardians of the Galaxy), that DD3 lacked the
necessary licensing rights to operate MOVA. Moreover, had
Disney continued to monitor DD3’s authorization to use
MOVA during contract performance, Disney could have
reasonably discovered Rearden’s February 2016 copyright
registration. Given that “registration of a copyright
certificate constitutes prima facie evidence of the validity of
[the] copyright,” Ent. Rsch. Grp., Inc. v. Genesis Creative
Grp., Inc., 122 F.3d 1211, 1217 (9th Cir. 1997) (citing 17
U.S.C. § 410(c)), this registration was strong evidence of
24 REARDEN, LLC V. WALT DISNEY PICTURES
DD3’s potential infringement. In sum, viewing the record as
a whole, there was sufficient evidence from which the jury
could have reasonably concluded that Disney had the
practical ability to identify that DD3’s use of MOVA was
potentially infringing.
The mere fact that the copyright ownership dispute was
not definitively resolved until August 2017, after BATB was
released, does not insulate Disney from liability. To limit
vicarious liability to situations where infringement can be
identified with certainty would effectively preclude
vicarious liability in any situation where copyright
ownership is actively disputed or where the direct infringer
has a nontrivial fair use defense. We are not persuaded that
copyright infringement liability is so limited.
In general, “copyright infringement is a strict liability
tort,” Bell v. Wilmott Storage Servs., LLC, 12 F.4th 1065,
1081 (9th Cir. 2021), and “although the problem of the
innocent infringer was considered at some length in
[congressional] hearings, the 1909 [Copyright Act]
contained no broad provisions excusing innocent
infringers,” Alan Latman & William S. Tager, Liability of
Innocent Infringers of Copyright, Study No. 25, in 2 Studies
on Copyright 141 (Copyright Soc’y U.S.A. eds., 1963). This
general principle applies with no less force to claims of
vicarious liability. Even where the defendant cannot be
certain whether the conduct at issue is infringing, “the
innocent infringer . . . must suffer, since he, unlike the
copyright owner, either has an opportunity to guard against
the infringement (by diligent inquiry), or at least the ability
to guard against the infringement (by an indemnity
agreement . . . and/or by insurance).” Shapiro, 316 F.2d at
308 (citation omitted). Indeed, here Disney did in fact guard
REARDEN, LLC V. WALT DISNEY PICTURES 25
against the risk of infringement by including an
indemnification clause in its contract with DD3.
* * *
In sum, because we conclude that Rearden introduced
sufficient evidence at trial from which the jury could find
that Disney had “both a legal right to stop or limit [DD3’s]
infringing conduct, as well as the practical ability to do so,”
VHT, 918 F.3d at 746 (citation omitted), we reverse the
district court’s grant of JMOL in favor of Disney.
IV. JURY TRIAL RIGHT ON THE PROFITS
REMEDY
Because we conclude that Disney is not entitled to
JMOL, we next consider whether Rearden is entitled to a
new jury trial on the issue of apportionment of profits. “The
right of trial by jury as declared by the Seventh Amendment
to the [United States] Constitution—or as provided by a
federal statute—is preserved to the parties inviolate.” Fed.
R. Civ. P. 38(a). On appeal, Rearden does not challenge the
district court’s ruling that disgorgement of profits is an
equitable remedy, and thus the Seventh Amendment does
not guarantee a jury trial right on the issue. 3 However,
Rearden argues that the district court erred in concluding that
the Copyright Act does not provide a statutory jury trial
right. We affirm the district court’s ruling.
3
The Seventh Amendment guarantees a litigant’s right to a jury trial only
for “suits at common law,” which “include statutory claims that are legal
(as opposed to equitable).” Fifty-Six Hope Rd. Music, Ltd. v. A.V.E.L.A.,
Inc., 778 F.3d 1059, 1074-75 (9th Cir. 2015).
26 REARDEN, LLC V. WALT DISNEY PICTURES
A. Statutory Jury Trial Right Under the
Copyright Act
Under 17 U.S.C. § 504(b), a copyright owner “is entitled
to recover the actual damages suffered by him or her as a
result of the infringement, and any profits of the infringer
that are attributable to the infringement and are not taken into
account in computing the actual damages.” Rearden argues
that this language implicitly provides a jury trial right on the
profits issue because the statutory text, read in the context of
the Copyright Act’s multiple remedy provisions, evinces
“congressional intent to grant . . . the right to a jury trial” on
this issue. Feltner v. Columbia Pictures Television, Inc., 523
U.S. 340, 345 (1998) (quoting Tull v. United States, 481 U.S.
412, 417 n.3 (1987)).
This is a matter of first impression in our court, and, to
our knowledge, no other circuit has squarely addressed the
issue. The Federal Circuit has concluded that disgorgement
of profits is an equitable remedy in the context of copyright
infringement, patent infringement, trademark infringement,
and trade secret misappropriation and thus a plaintiff has no
Seventh Amendment jury trial right on these claims. Tex.
Advanced Optoelectronic Sols., Inc. v. Renesas Elecs. Am.,
Inc., 895 F.3d 1304, 1324-25 (Fed. Cir. 2018). However, the
Federal Circuit has not addressed whether the Copyright Act
provides a statutory right to a jury trial. See id.
Multiple district courts have considered this question,
and the majority have concluded that the Copyright Act does
not grant a jury trial right on disgorgement of profits claims.
See Assessment Techs. Inst., LLC v. Parkes, No. 19-2514,
2022 WL 588889, at *2 (D. Kan. Feb. 25, 2022); Bertuccelli
v. Universal Studios LLC, No. CV 19-1304, 2021 WL
2227337, at *2 (E.D. La. June 2, 2021); Navarro v. Procter
REARDEN, LLC V. WALT DISNEY PICTURES 27
& Gamble Co., 529 F. Supp. 3d 742, 747-49 (S.D. Ohio
2021); Fair Isaac Corp. v. Fed. Ins. Co., 468 F. Supp. 3d
1110, 1113-14 (D. Minn. 2020). But see Capture Eleven
Grp. v. Otter Prods., LLC, 724 F. Supp. 3d 1237, 1239-40
(D. Colo. 2023); Huffman v. Activision Publ’g, Inc., No.
2:19-CV-00050, 2021 WL 2339193, at *3-5 (E.D. Tex. June
8, 2021). We agree with the majority of district courts and
hold that § 504(b) does not provide a statutory jury trial right
on the disgorgement of profits remedy.
In Feltner, the Supreme Court held that the Copyright
Act does not provide a jury trial right for a separate
infringement remedy: statutory damages under 17 U.S.C.
§ 504(c). 523 U.S. at 345-47. The Court explained that the
language of § 504(c) “make[s] no mention of a right to a jury
trial or, for that matter, to juries at all.” Id. at 346. So too
here. Section 504(b) is silent on the question of whether
copyright plaintiffs have a right to a jury trial on the profits
remedy. As Congress can, and frequently does, expressly
provide for a statutory right to a jury trial, see, e.g., 31 U.S.C.
§ 5323(g)(3)(B)(i); 28 U.S.C. § 2402; 42 U.S.C. § 1981a(c);
21 U.S.C. § 467b(a)(4), its silence here is strong evidence
that it did not intend to confer a jury trial right.
However, congressional silence does not end our
inquiry. In Feltner, the Court further explained that the
repeated use of the phrase “the court” in § 504(c)
“appear[ed] to mean judge, not jury.” 523 U.S. at 346; see
id. at 345-46 (“Statutory damages are to be assessed in an
amount that ‘the court considers just.’ Further, in the event
that ‘the court finds’ the infringement was willful or
innocent, ‘the court in its discretion’ may, within limits,
increase or decrease the amount of statutory damages.”
(emphasis added) (quoting 17 U.S.C. § 504(c))).
28 REARDEN, LLC V. WALT DISNEY PICTURES
Section 504(b), by contrast, lacks any such reference to “the
court.”
Rearden seizes on this difference, along with the
following language in Feltner that expressly distinguishes
§ 504(b) from the Copyright Act’s other remedy provisions,
including § 504(c):
[T]he other remedies provisions of the
Copyright Act use the term “court” in
contexts generally thought to confer authority
on a judge, rather than a jury. See, e.g., § 502
(“court . . . may . . . grant temporary and final
injunctions”); § 503(a) (“[T]he court may
order the impounding . . . of all copies or
phonorecords”); § 503(b) (“As part of a final
judgment or decree, the court may order the
destruction or other reasonable disposition of
all copies or phonorecords”); § 505 (“[T]he
court in its discretion may allow the recovery
of full costs” of litigation, and “the court may
also award a reasonable attorney’s fee”). In
contrast, the Copyright Act does not use the
term “court” in the subsection addressing
awards of actual damages and profits, see
§ 504(b), which generally are thought to
constitute legal relief. See Dairy Queen, Inc.
v. Wood, 369 U.S. 469, 477 (1962) (action for
damages for trademark infringement “subject
to cognizance by a court of law”); see also
Arnstein v. Porter, 154 F.2d 464, 468 (2d Cir.
1946) (copyright action for damages is
“triable at ‘law’ and by a jury as of right”);
Video Views, Inc. v. Studio 21, Ltd., 925 F.2d
REARDEN, LLC V. WALT DISNEY PICTURES 29
1010, 1014 (7th Cir. 1991) (“little question
that the right to a jury trial exists in a
copyright infringement action when the
copyright owner endeavors to prove and
recover its actual damages”); 3 Melville
Nimmer & David Nimmer, Nimmer on
Copyright § 12.10[B] (1997) (“beyond
dispute that a plaintiff who seeks to recover
actual damages is entitled to a jury trial”
(footnotes omitted)).
523 U.S. at 346. Rearden argues that this reasoning supports
the conclusion that, because § 504(b) lacks a reference to
“the court,” Congress intended to create a jury trial right for
both of the remedies provided for in § 504(b)—i.e., both
actual damages and profits.
We disagree. Nothing in Feltner suggests that the lack of
a reference to “the court” would, on its own, be enough to
show congressional intent to create a jury trial right. And “in
the references cited for support” in Feltner’s discussion of
§ 504(b), “the Court provided explanatory parentheticals
related to only ‘damages,’ not ‘profits.’” Tex. Advanced
Optoelectronic, 895 F.3d at 1325 n.11. Read in context,
Feltner’s discussion of § 504(b) was focused on the actual
damages remedy, not the profits remedy.
Indeed, the lack of the phrase “the court” in § 504(b) is
unsurprising. The Copyright Act’s other remedy provisions
refer to remedial actions that have been long understood to
be under the remit of judges, not juries: injunctions,
impoundment, and the award of costs and attorney’s fees. 17
U.S.C. §§ 502, 503(a)-(b), 505. Because § 504(b) provides
for actual damages—an unquestionably legal remedy to
which a Seventh Amendment jury trial right attaches—a
30 REARDEN, LLC V. WALT DISNEY PICTURES
reference to “the court” in the subsection would be out of
place. We thus do not read the lack of reference to “the
court” in § 504(b) to imply a jury trial right for both forms
of relief authorized under the subsection.
We also note that Congress enacted the Copyright Act’s
damages provisions against a historical backdrop that
generally understood disgorgement of profits as a form of
equitable relief. “Prior to the Copyright Act of 1909,
. . . there had been no statutory provision for the recovery of
profits, but that recovery had been allowed in equity both in
copyright and patent cases as appropriate equitable relief
incident to a decree for an injunction.” Sheldon v. Metro-
Goldwyn Pictures Corp., 309 U.S. 390, 399 (1940)
(emphasis added). “In p[a]ssing the Copyright Act, the
apparent intention of Congress was to assimilate the remedy
with respect to the recovery of profits to that already
recognized in patent cases.” Id. at 400. To be sure, the
Copyright Act underwent a major statutory revision in 1976,
see Copyright Act of 1976, Pub. L. No. 94-553, 90 Stat.
2541, and the current remedies provisions differ in material
ways from the 1909 statute, compare Copyright Act of 1909,
ch. 320, § 25(b), 35 Stat. 1075, 1081, with 17 U.S.C.
§ 504(b). However, the Supreme Court has reaffirmed that
the profits remedy of § 504(b), as amended, remains best
characterized as equitable relief. See Petrella v. Metro-
Goldwyn-Mayer, Inc., 572 U.S. 663, 668 n.1 (2014) (“Like
other restitutional remedies, recovery of profits is not easily
characterized as legal or equitable, for it is an amalgamation
of rights and remedies drawn from both systems. Given the
protean character of the profits-recovery remedy, we regard
as appropriate its treatment as equitable in this case.”
(internal quotation marks and internal citations omitted)).
“Given [the profit remedy’s] history as a form of equitable
REARDEN, LLC V. WALT DISNEY PICTURES 31
relief, there is little reason to believe that Congress would
have intended, by implication, to create a jury trial right
when it added this relief to the statute” or when it amended
the statute in 1976. See Navarro, 529 F. Supp. 3d at 748-49.
Indeed, the legislative history from the 1976
amendments further supports the conclusion that Congress
intended the court, not a jury, to decide the profits remedy.
The House Report accompanying the 1976 Copyright Act
amendments explains that “[t]he language of [§ 504(b)]
makes clear that only those profits ‘attributable to the
infringement’ are recoverable; where some of the
defendant’s profits result from the infringement and other
profits are caused by different factors, it will be necessary
for the court to make an apportionment.” H.R. Rep. No. 94-
1476, at 161 (1976) (emphasis added). This reference to the
role of “the court” in making apportionment determinations
suggests that Congress intended for a judge—not a jury—to
decide this issue.
Rearden’s additional arguments do not persuade us
otherwise. Rearden argues that the structure of § 504(b),
which combines actual damages and profits in the same
subsection, supports an implied jury trial right. See also
Capture Eleven, 724 F. Supp. 3d at 1241; Huffman, 2021
WL 2339193, at *5 (“Pa[i]ring an unambiguously legal
remedy with a ‘protean’ remedy—without a stronger
indication that ‘infringer’s profits’ is intended to be
equitable—is a signal that Congress intended for the ‘profits-
recovery remedy’ to take on a legal nature.” (citation
omitted)). However, the mere fact that Congress provided
for a legal remedy and an equitable remedy in the same
statutory subsection does not necessarily evince an intent for
a jury to decide both remedies. See City of Monterey v. Del
Monte Dunes at Monterey, Ltd., 526 U.S. 687, 707-08
32 REARDEN, LLC V. WALT DISNEY PICTURES
(1999) (concluding that 42 U.S.C § 1983 does not provide a
statutory jury trial right despite its language that allows a
party to seek relief through “an action at law, suit in equity,
or other proper proceeding for redress”).
Relatedly, Rearden notes that § 504(b) awards only
profits that “are not taken into account in computing the
actual damages.” 17 U.S.C. § 504(b). As copyright plaintiffs
are entitled a jury trial on the actual damages under the
Seventh Amendment, “as a practical matter, it may be
difficult for a court to assess the extent to which the jury took
the profits ‘into account’ in fashioning the actual damages
award.” Navarro, 529 F. Supp. 3d at 748-49. Although it is
true that the district court may not know with certainty if or
how the jury considered profit information in awarding
actual damages, the district court can determine for itself the
extent to which an actual damages award takes profits into
account.
Finally, Rearden highlights that courts regularly submit
the issue of profit disgorgement to juries in copyright cases.
Indeed, multiple circuits—including our own—have
adopted pattern jury instructions on calculating profit-based
copyright damages. However, pattern instructions are
nonbinding and may be erroneous. See, e.g., Bearchild v.
Cobban, 947 F.3d 1130, 1142 (9th Cir. 2020) (“The use of a
model jury instruction does not preclude a finding of error.”
(internal quotation marks, citation, and alterations omitted)).
The fact that courts have sent the profits question to juries in
the past does not mean that parties are entitled to a jury trial
on this issue.
Because “[n]othing in the language of” the Copyright
Act “or its legislative history implies any congressional
intent” to provide a jury trial right on the profits remedy,
REARDEN, LLC V. WALT DISNEY PICTURES 33
Tull, 481 U.S. at 417 n.3, we ultimately conclude that
Rearden’s arguments are “too thin a reed to support an
implied right to a jury trial on the issue.” Navarro, 529 F.
Supp. 3d at 749.
B. Procedural Error
Rearden also raises procedural challenges to the district
court’s ruling striking Rearden’s jury demand as to the
profits remedy. Specifically, Rearden argues that: (1) the
court violated Federal Rules of Civil Procedure 38 and 39,
and (2) the mid-trial timing of the ruling constitutes
reversible error. These arguments are unavailing.4
Under Rule 38, “[o]n any issue triable of right by a jury,
a party may demand a jury trial by” serving the other parties
with a written demand, and such “[a] proper demand may be
withdrawn only if the parties consent.” Rule 39(a) requires
trial by jury “on all issues so demanded” unless “(1) the
parties . . . file a stipulation to a nonjury trial . . . ; or (2) the
court, on motion or on its own, finds that on some or all of
those issues there is no federal right to a jury trial.”
Rearden argues that, under these provisions, after
originally consenting to Rearden’s jury demand, Disney
could not then unilaterally withdraw its consent. However, a
“proper demand” that would require both parties’ consent to
withdraw is a demand on an “issue triable of right by a jury.”
4
Disney argues that Rearden has waived these procedural objections by
failing to raise these issues before the district court. Because Rearden’s
procedural challenges raise questions of law and there is no deficiency
in the record that would preclude our review, we exercise our discretion
to excuse any waiver of these issues and address Rearden’s arguments
on the merits. See Ruiz v. Affinity Logistics Corp., 667 F.3d 1318, 1322
(9th Cir. 2012) (“[T]he rule of waiver is a discretionary one.” (quoting
Ackerman v. W. Elec. Co., 860 F.2d 1514, 1517 (9th Cir. 1988))).
34 REARDEN, LLC V. WALT DISNEY PICTURES
Fed. R. Civ. P. 38(b), (d) (emphasis added). As discussed
above, see supra Section IV.A, disgorgement of profits is
not an issue triable of right by a jury, as there is no Seventh
Amendment or statutory jury trial right. See Ross Dress for
Less, 39 F.4th at 1121 (explaining that if a party has “neither
a constitutional nor a statutory right to demand a jury trial,”
“its demand . . . ‘[can]not have been made “as provided in
Rule 38” for purposes of Rule 39’” (quoting Craig v.
Atlantic Richfield Co., 19 F.3d 472 (9th Cir. 1994))); Kramer
v. Banc of Am. Sec., LLC, 355 F.3d 961, 968 (7th Cir. 2004)
(“[Plaintiff] had no right to a jury trial and there is no
restraint in the text of Rule 39 on the ability of a party to
withdraw its consent to a jury trial that is not of right.”).
Nor did the district court commit reversible error by
striking Rearden’s jury demand mid-trial. To be sure, it is
preferable for the parties to know the factfinder on all issues
before trial begins. See, e.g., Pradier v. Elespuru, 641 F.2d
808, 811 (9th Cir. 1981) (“There are frequently significant
tactical differences in presenting a case to a court, as
opposed to a jury.”). However, in the absence of
demonstrable prejudice, declaring the jury advisory mid-trial
is not a per se basis for reversal. See Merex A.G. v. Fairchild
Weston Sys., Inc., 29 F.3d 821, 826 (2d Cir. 1994)
(“[Plaintiff] alternatively argues that, even if it was not
entitled to a jury trial, the trial court committed reversible
error by declaring the jury advisory after the trial had
actually started. We do not read Rule 39(c) . . . to compel
such a conclusion.”); Ind. Lumbermens Mut. Ins. Co. v.
Timberland Pallet & Lumber Co., 195 F.3d 368, 375 (8th
Cir. 1999) (“[F]ailure to give advance notice alone, absent
some demonstrable prejudice to the complaining party,
would not be a basis for reversal.”); Ed Peters Jewelry Co.
v. C & J Jewelry Co., 215 F.3d 182, 188 (1st Cir. 2000)
REARDEN, LLC V. WALT DISNEY PICTURES 35
(“[B]oth parties undoubtedly spent more time in preparation
for trial and during trial in explaining the issues carefully
than would have been expended if notice of the ruling had
been given prior to trial. But this, in our opinion, is not
sufficient reason for establishing a hard and fast time rule
limiting the judge’s discretion for ruling whether issues
sound in equity or law.”).
Here, Rearden has failed to demonstrate any prejudice.
The district court never informed the jury that its verdict on
profits was merely advisory and originally adopted the
advisory jury’s verdict before concluding that Disney was
entitled to JMOL. Rearden has failed to explain any way in
which it would have presented its case differently at trial had
it known that the jury would be advisory. “[A]bsent some
demonstrable prejudice,” we conclude that it was not
reversible error for the district court to declare the jury
advisory after Rearden had presented much of its case-in-
chief. Merex, 29 F.3d at 827.
* * *
Because we conclude that the Copyright Act provides no
statutory jury trial right on the issue of disgorgement of
profits, and we find no reversible procedural error in the
district court’s ruling, we affirm the district court’s order
striking the jury demand on the issue of disgorgement of
profits.
V. EVIDENTIARY RULINGS
Finally, Rearden challenges two of the district court’s
evidentiary rulings. First, Rearden argues that the district
court abused its discretion in granting Disney’s motion to
exclude the testimony of Rearden’s damages expert on the
issue of apportionment of profits. Second, Rearden argues
36 REARDEN, LLC V. WALT DISNEY PICTURES
the district court abused its discretion in excluding evidence
of DD3’s agreement to indemnify Disney. We find neither
argument persuasive.
A. Profits Apportionment Testimony
The district court excluded the profits apportionment
testimony of Rearden’s damages expert both because key
assumptions in the expert’s apportionment testimony lacked
an “identifiable methodology” and because the expert failed
to explain how his professional experience rendered him
qualified to conduct the apportionment analysis. Ultimately,
“[t]he district court must ensure that expert testimony,
whether it is based on ‘professional studies or personal
experience, employs in the courtroom the same level of
intellectual rigor that characterizes the practice of an expert
in the relevant field.’” Fortune Dynamic, Inc. v. Victoria’s
Secret Stores Brand Mgmt., Inc., 618 F.3d 1025, 1035-36
(9th Cir. 2010) (quoting Kumho Tire Co. v. Carmichael, 526
U.S. 137, 152 (1999)); see also Gen. Elec. Co. v. Joiner, 522
U.S. 136, 146 (1997) (“[N]othing in either Daubert or the
Federal Rules of Evidence requires a district court to admit
opinion evidence that is connected to existing data only by
the ipse dixit of the expert. A court may conclude that there
is simply too great an analytical gap between the data and
the opinion proffered.”). In light of the expert’s deposition
testimony, in which he failed to provide a cogent explanation
of his methodology and repeatedly conceded that he lacked
knowledge about MOVA technology, the district court did
not abuse its discretion in concluding that the expert’s
testimony lacked appropriate rigor and excluding the
expert’s opinion on this subject.
REARDEN, LLC V. WALT DISNEY PICTURES 37
B. Indemnification Evidence
Nor did the district court abuse its discretion in excluding
evidence about DD3’s contractual duty to indemnify
Disney’s production affiliate under Federal Rule of
Evidence 403. To be sure, the indemnification agreement
was probative of the credibility of DD3 witnesses. See In re
Hanford Nuclear Rsrv. Litig., 534 F.3d 986, 1014 (9th Cir.
2008) (“Evidence of indemnification is generally
inadmissible but may be used to show prejudice or bias of a
witness.”). However, the district court conducted a Rule 403
balancing analysis and concluded that the indemnification
agreement should be excluded “because the risk of confusion
or unfair prejudice outweigh[ed] any probative value.” On
this record, we do not find this ruling to be an abuse of
discretion, i.e., “illogical,” “implausible,” or “without
support in inferences that may be drawn from the facts in the
record.” United States v. Espinoza, 880 F.3d 506, 511 (9th
Cir. 2018) (quoting United States v. Hinkson, 585 F.3d 1247,
1262 (9th Cir. 2009) (en banc)).
VI. CONCLUSION
For the foregoing reasons, we reverse the district court’s
order granting JMOL in favor of Disney on Rearden’s
vicarious copyright liability claim. However, we affirm the
district court’s orders striking the jury demand on
disgorgement of profits, excluding the testimony of
Rearden’s damages expert on apportionment of profits, and
excluding the indemnification agreement between Disney
and DD3. Accordingly, we deny Rearden’s request for a new
jury trial on the issue of apportionment of profits.
AFFIRMED in part; REVERSED in part; and
REMANDED.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT REARDEN, LLC; REARDEN No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT REARDEN, LLC; REARDEN No.
02WALT DISNEY PICTURES, a OPINION California corporation, Defendant - Appellee.
03Tigar, District Judge, Presiding Argued and Submitted June 4, 2025 San Francisco, California Filed September 11, 2025 Before: Consuelo M.
04WALT DISNEY PICTURES SUMMARY* Copyright The panel affirmed in part and reversed in part the district court’s judgment as a matter of law in favor of Defendant Walt Disney Pictures (“Disney”) after a two- week jury trial involving a claim of
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT REARDEN, LLC; REARDEN No.
FlawCheck shows no negative treatment for Rearden, LLC v. Walt Disney Pictures in the current circuit citation data.
This case was decided on September 11, 2025.
Use the citation No. 10670000 and verify it against the official reporter before filing.