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Cosplaying Fast and Loose: Intellectual Property Theft or Innovation

Jurisdiction: United States; historical case commentary. Reviewed 27 October 2026.

Cosplay can be creative expression, a hobby or a paid entertainment service. Those settings raise different questions; being paid is not by itself a complete test for copyright or trade mark infringement. This article examines a US decision, rather than asserting a current rule for Japan.

The Characters for Hire dispute

Disney, Marvel and Lucasfilm brought copyright and trade mark claims concerning costumed character entertainment. In Disney Enterprises, Inc. v. Sarelli, 322 F. Supp. 3d 413 (S.D.N.Y. 2018), the court addressed the evidence on summary judgment. The trade mark issue concerned likely confusion about the source or sponsorship of the services.

The court granted the defendants summary judgment on the trade mark infringement claims. It did not establish a general right to copy entertainment characters. Nor did the refusal of the plaintiffs’ requested copyright judgment amount to a final ruling that every costume was lawful; evidentiary and remaining-claim issues must be kept separate.

Fair use is not one universal defence

Descriptive or nominative use in a trade mark dispute and copyright fair use involve different legal questions. A disclaimer, changed character name or humorous costume does not automatically dispose of either claim. Consider what was copied, how it was marketed and which right is asserted.

The practical takeaway

A decision about a particular record and service should not become blanket clearance for a new business. Check licences, character rights, advertising and the law where the activity occurs. The earlier article’s prediction of a continuing stalemate was speculation, not a reported outcome.

Sources and further reading

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