Terrence Dunn launched legal action against the firm last summer (10), alleging the 2008 box office smash, which features the voices of Jack Black and Angelina Jolie, was based on a story he pitched to executives in 2001 about a ""spiritual kung fu fighting panda bear"".
Dunn claims DreamWorks heads passed on his project, before beginning work on their own animated tale months later.
He sued for breach of implied contract and demanded a cut of the profits from Kung Fu Panda's $600 million (£400 million) worldwide gross. A sequel was released earlier this year (11).
The case went to trial this summer (11) and a jury ruled in DreamWorks' favour after just three days of deliberations, reports The Hollywood Reporter.
A statement issued by the studio bosses reads, ""We are pleased with the decision of the jury, which supports our position that this was a baseless lawsuit.""
Dunn is planning to appeal the decision.