Stolen Oscar Twist, Frances McDormand Not the Victim 'Cause She Doesn't Own It!!!

The guy who allegedly stole Frances McDormand's Oscar is not going to escape criminal charges just because she doesn't want him prosecuted ... and that's because she's not the victim.

We did some checking and it turns out the Academy of Motion Picture Arts and Sciences owns the hardware ... despite the fact the statue was bestowed on Frances and even engraved with her name. Thus the Academy is listed as the victim on the police report.

According to Academy rules, the winner of an Oscar has the right of possession but not ownership, and that's why the statue cannot legally be sold to anyone without first offering it to the Academy for $1.

Terry Bryant is currently behind bars after being arrested for felony grand theft. He took the Oscar off the table where Frances was sitting and videotaped himself with the award in hand.

Academy officials have told the LAPD they want Bryant prosecuted and that's why the case is going forward.

No word yet on whether charges will be filed.

Bryant remains in custody ... apparently he's been unable to post the $20,000 for bail.