Disney and James Cameron are hit with a blockbuster copyright lawsuit over Avatar: The Way of Water

16 December 2025

James Cameron / 'Avatar: The Way of Water' Getty Images / Walt Disney Studios Motion Pictures/Courtesy Everett Collection

In a dramatic turn of events barely days before the next installment of the Avatar franchise was due to hit theaters, The Walt Disney Company and acclaimed filmmaker James Cameron found themselves embroiled in a high-stakes copyright infringement lawsuit that could shake Hollywood’s creative foundations and cast a long shadow over one of the most successful film series in history. The lawsuit, filed on December 15, 2025 in the United States District Court for the Central District of California, was brought by former 3-D animator Eric Ryder, who claims that key elements of the 2022 blockbuster Avatar: The Way of Water were unlawfully taken from his unpublished science fiction story titled KRZ. Ryder is demanding at least $500 million in damages and seeking an injunction to prevent the release of Avatar: Fire and Ash, the third film in the franchise, which was scheduled to open in U.S. theaters on December 19, 2025.

According to the lawsuit, Ryder worked with Cameron’s production company, Lightstorm Entertainment, in the late 1990s and early 2000s to develop a project based on his story KRZ, a science-fiction narrative set in the distant future that features anthropomorphic beings, a dramatic oceanic environment and a sinister Earth-based corporation conducting exploitative mining operations on a moon of a gas giant. The complaint alleges that Lightstorm and Cameron ultimately abandoned the original project after telling Ryder that no one would be interested in an environmentally themed science fiction film. Decades later, Disney and Lightstorm released Avatar, and according to the lawsuit, Ryder’s ideas were subsequently integrated into Avatar: The Way of Water without his permission or compensation.

The Avatar series, which began with the original 2009 film that became the highest-grossing movie of all time, has grown into a global cultural phenomenon, branching out into multiple sequels, expansive world-building, theme park attractions and related media. Avatar: The Way of Water alone grossed billions worldwide, making it one of the most commercially successful films ever released. The new lawsuit comes at a precarious time, as its claims could potentially affect the rollout of Avatar: Fire and Ash, the third installment of the franchise scheduled for release just days after the lawsuit was filed.

Ryder’s complaint, filed under the case name Ryder v. Cameron, includes detailed side-by-side charts that seek to demonstrate how aspects of KRZ align with specific settings, plot structures, character arcs and visual imagery used in The Way of Water. The lawsuit emphasizes that when Lightstorm and Cameron could not reach an agreement to acquire the rights to KRZ, they allegedly incorporated Ryder’s creative concepts into the Avatar sequel anyway. The plaintiff argues that this conduct amounts to blatant misappropriation of his intellectual property, and he is seeking not only financial compensation but also punitive damages and injunctive relief to halt further exploitation of the disputed material.

One of the most striking aspects of the lawsuit is its timing. With Avatar: Fire and Ash due to open nationwide just days later, Ryder’s attorneys have filed the case in hopes of persuading the court to block the release of the new film or at least apply pressure ahead of its debut. Legal experts have noted that obtaining an injunction against a major studio release presents a significant challenge, especially under tight timelines, but the request underscores how seriously Ryder and his legal team view the alleged infringement. The film’s release schedule and the lawsuit’s proximity have sparked intense discussion within industry circles about the interplay between creative rights, blockbuster filmmaking and the legal protections afforded to original ideas.

This is not the first time that Avatar and its creators have faced copyright challenges. Ryder himself brought a similar lawsuit over the original Avatar film in 2011, but that earlier case was dismissed after a court ruled that Cameron had created the work independently. The current complaint, meanwhile, asserts that the new sequel contains discrete and specific elements drawn from Ryder’s work that were not present in the earlier era of litigation. Analysts suggest that the renewed legal push reflects both the high commercial stakes of the Avatar franchise and the evolving nature of intellectual property disputes in Hollywood.

Despite the public attention the lawsuit has drawn, neither Disney nor Lightstorm Entertainment nor Cameron had issued a formal comment at the time of reporting. Major studios typically refrain from commenting on pending litigation, and such statements are often handled through legal filings rather than public press releases. Observers expect that Disney’s defense will argue that the Avatar films are original works and that any similarities between KRZ and The Way of Water are coincidental or fall under creative interpretation. The stakes in this case are considerable, given that a ruling in Ryder’s favor could set precedent affecting how studios handle creator-submitted ideas and collaborations in the future.

The Avatar franchise’s trajectory has been historic. Begun by Cameron, known for his meticulous approach to world-building and technological innovation in filmmaking, the series has pushed the boundaries of visual effects and immersive storytelling for more than a decade. With titles such as Avatar: The Way of Water and its sequels, the saga has expanded far beyond its original narrative, exploring new environments and deepening the lore of Pandora’s inhabitants. Ryder’s lawsuit brings a sharp legal focus to the question of how much of that creative evolution may be rooted in earlier, uncredited collaboration.

The outcome of this case could prove significant not just for the parties involved but for the broader entertainment industry as well. Cases that pit individual creators against major studios carry implications for how intellectual property is protected, how litigation strategies are formed and how future disputes over creative ownership will be handled. As Avatar: Fire and Ash continues its promotion and release schedule, all eyes will be on both the box office and the courtroom to see how this high-profile legal drama unfolds alongside one of the year’s most anticipated film events.