On December 29, 2015,
CBS and
Paramount Pictures filed a copyright lawsuit seeking damages in the
US District Court for the Central District of California, alleging that the Axanar works infringed their rights by making use of the
Klingon language and "innumerable copyrighted elements of
Star Trek, including its settings, characters, species, and themes". On March 28, 2016, Axanar Productions filed a
motion to dismiss or
strike Paramount and CBS' claims on the basis that the elements mentioned in the court filing were not protected by copyright and it was seeking premature relief from a work, the
Axanar film, that did not exist. On May 9, 2016, the motion to dismiss the lawsuit was denied. Later that month,
J. J. Abrams said that "within the next few weeks, it will be announced this is going away". Abrams said he pushed the studio to stop the lawsuit, because "we realized this is not the appropriate way to deal with the fans". This statement by Abrams had no apparent effect on the lawsuit, since the case was scheduled for a jury trial in early 2017. On June 23, 2016, Paramount and CBS released new fan film guidelines, which Axanar staff described as "disheartening" and "draconian". Alec Peters had several times suggested that the rights holders should issue guidelines to fan film makers, albeit after the lawsuit was filed and CBS announced their intent to release official guidelines, and even went so far as proposing his own list of guidelines. The fan discussions contributing to the CBS proposal took place in a private Facebook group, and a key proposition was to allow crowdfunding for fan projects; however, the banning of crowdfunding was included in the official list of CBS guidelines. CBS cited crowdfunding as the reason for new and more strict
Star Trek fan film guidelines. On January 5, 2017, U.S. District Court judge
R. Gary Klausner rejected various motions by both parties, setting the stage for a civil trial on the matter to go forward on January 31. On January 20, 2017, the parties announced that the lawsuit had been settled, with Peters and Axanar Productions promising to make "substantial changes" to
Axanar and agreeing to abide by Paramount's and CBS' "Guidelines for Fan Films". Under the terms of the settlement, the filmmakers will be allowed to release two 15-minute movies, instead of their planned 90-minute feature. Over five years later, CBS and Paramount began arbitration proceedings against Axanar Productions and Alec Peters on May 23, 2022, stemming from Peters' and Axanar's breaches of the settlement agreement. Hearings were held by
JAMS on May 8 and May 9, 2023 with a final arbitration award entered on September 1, 2023. In that award, the arbiter found in support of CBS and Paramount, the plaintiffs, thus resulting in Peters owing $292,372.54 in attorney fees and costs, plus interest (including a rate of $80.10 USD per day).{{cite news|url=https://www.plagiarismtoday.com/2023/10/23/axanar-creator-faces-new-legal-threat/|title=Axanar Creator Faces New Legal Threat ==References==