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James Cameron Accused of Stealing Key Elements for Avatar: The Way of Water

A new legal battle has surfaced over the world of Pandora. An animator has filed a lawsuit against Disney and director James Cameron, alleging that the 2022 blockbuster Avatar: The Way of Water contains copyright-protected material stolen from their original work.

Related – Avatar Fire & Ash Display Debuts at AMC Theaters in Disney Springs

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According to Reuters, Eric Ryder alleges that he collaborated with James Cameron’s Lightstorm Entertainment in the late ’90s to develop a film based on his sci-fi story, KRZ. Ryder claims that Cameron subsequently lifted elements from that story for the Avatar franchise.

While Ryder filed a similar lawsuit in 2011 concerning the original film, a California court dismissed it, ruling that Cameron had conceived of Avatar before Ryder’s submission. However, this new litigation insists it is not a “retrial” of old grievances. Instead, it targets specific, new instances of alleged copying found for the first time in The Way of Water.

Ryder is now seeking $500 million in damages for copyright infringement, breach of contract, and unfair competition. He is also requesting a court order to block the release of the upcoming sequel, Avatar: Fire and Ash, which is currently slated to hit theaters this Friday, December 19.

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Attorney Daniel Saunders, representing Eric Ryder, released a scathing statement describing the situation as “downright theft” of creative work to build the third highest-grossing film in history. The lawsuit argues that Avatar: The Way of Water goes far beyond sharing vague similarities with Ryder’s story, KRZ. Instead, it alleges the film duplicates specific “character architecture, plot sequencing, and thematic construction” that were entirely missing from James Cameron’s earlier drafts.

Central to the case is the introduction of a life-extending substance harvested from animals—a key plot device in The Way of Water. Ryder claims this is the exact “unique and highly specific narrative mechanism” he disclosed to Cameron’s team years ago. The suit emphasizes that this device has no documented origin in Disney or Lightstorm’s independent development history, appearing only after they had access to Ryder’s proprietary work.

The similarities cited in the lawsuit are striking: Ryder’s original story, KRZ, features anthropomorphic beings and a vast oceanic setting centered on a moon orbiting the gas giant Europa. The plot follows a “sinister, Earth-based corporation” conducting destructive mining operations—themes that closely mirror the conflict in the Avatar sequels. This high-stakes legal battle comes at a time of massive financial success for the director; James Cameron was recently declared a billionaire, with a net worth now estimated at $1.1 billion.

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