Disney and James Cameron prevail in Avatar copyright lawsuit dismissal

Disney and James Cameron have successfully dismissed a copyright infringement lawsuit filed by Eric Ryder, who claimed that the Avatar sequels The Way of Water and Fire and Ash copied elements from his science-fiction story KZR.

US District Judge George H. Wu ruled on October 1 in the Central District of California, dismissing Ryder’s First Amended Complaint without allowing further amendments. Ryder originally filed the lawsuit in December 2025 against Cameron, Lightstorm Entertainment, Disney, 20th Century Studios, and other defendants. The amended complaint, filed in April 2026, expanded the allegations to include both sequels.

The court rejected Ryder’s copyright claim under the Ninth Circuit’s extrinsic test, finding that many of the alleged similarities either derived from an earlier Avatar scriptment or from the first film, which predated the defendants’ access to KZR. The judge also concluded that expert evidence was unnecessary to determine substantial similarity, as the works were intended for general audiences.

Ryder’s complaint included additional state-law claims, such as breach of contract and unfair competition. However, after dismissing the federal copyright claim, Judge Wu declined to exercise supplemental jurisdiction over these claims and dismissed them without prejudice.

The ruling followed an earlier decision in July, which gave Ryder an opportunity to amend his complaint. Instead, he chose to stand on the First Amended Complaint, leading to the court’s final decision. The litigation involved prominent legal teams, with Munger, Tolles & Olson representing the defendants and Kasowitz LLP representing Ryder.