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The Wall Street Journal: Disney faces a lawsuit for the visual-effects in ‘Beauty and the Beast’

A lawsuit against Walt Disney Co. has roped the entertainment giant into a long-running legal dispute over ownership rights to a visual-effects technology, potentially threatening the company’s ability to profit from the top-grossing movie so far this year.

Rearden LLC, a company controlled by Silicon Valley entrepreneur Steve Perlman, on Monday sued Disney DIS, -0.14% in U.S. District Court in San Francisco, alleging copyright, patent and trademark infringement, stemming from Disney’s use of a facial-capture technology in the March blockbuster “Beauty and the Beast,” as well as 2014’s “Guardians of the Galaxy” and 2015’s “Avengers: Age of Ultron.”

Rearden is seeking injunctions to stop Disney from selling or showing these movies until the two companies reach a deal.

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