Franck Le Calvez launched legal action against the Hollywood giant, insisting Disney bosses had based the film's title character on his orange and white clown fish Pierrot--without his consent.
However, a French court yesterday embarrassed Calvez by ruling Disney had drawn up Nemo before Pierrot existed. The judge also speculated Calvez may have stolen the idea from Disney.
He was ordered to pay $80,000 damages and costs.
Disney lawyer Magali Thorne--who insists Nemo first came to life in 2000--says the company is "very, very, very happy" with the outcome.
Le Calvez had already lost one case last March when a court concluded the two fish were similar--both have big smiles and sport three stripes down the side--but found their similarities were not enough to confuse people.
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