Nonlinear interactions between collective modes play a definitive role in far out of equilibrium dynamics of strongly correlated electron systems. Understanding and utilizing these interactions is crucial to photocontrol of quantum many-body states. One of the most surprising examples of strong mode coupling is the interaction between apical oxygen phonons and Josephson plasmons in bilayer YBa 2 Cu 3 O 6+x superconductors. Experiments by Hu et al. [Nat. Mater. 13, 705 (2014)] and Kaiser et al. [Phys. Rev. B 89, 184516 (2014)] showed that below T c , photoexcitation of phonons leads to enhancement and frequency shifts of Josephson plasmon edges, while above T c , photoexcited phonons induce plasmon edges even when there are no discernible features in the equilibrium reflectivity spectrum. Recent experiments by von Hoegen et al. (arXiv:1911.08284) also observed parametric generation of Josephson plasmons from photoexcited phonons both below T c and in the pseudogap phase. In this paper, we present a theoretical model of three-wave phonon-plasmon interaction arising from changes of the in-plane superfluid stiffness caused by the apical oxygen motion. Analysis of the parametric instability of plasmons based on this model gives frequencies of the most unstable plasmons that are in agreement with experimental observations. We also discuss how strong parametric excitation of Josephson plasmons can explain pump-induced changes in the terahertz reflectivity of YBa 2 Cu 3 O 6+x in the superconducting state, including frequency shifts and sharpening of Josephson plasmon edges, as well as appearance of a new peak around 2 THz. An interesting feature of this model is that overdamped Josephson plasmons do not give any discernible features in reflectivity in equilibrium, but can develop plasmon edges when parametrically excited. We suggest that this mechanism explains photoinduced plasmon edges in the pseudogap phase of YBa 2 Cu 3 O 6+x .