Why Disney is Suing Redbox

Dec 1, 2017  •  Post A Comment

Disney has filed a lawsuit against Redbox, the company that operates DVD rental kiosks at grocery stores and other outlets nationwide.

The Hollywood Reporter’s THR, Esq., reports that the suit, which could test copyright boundaries, accuses Redbox of selling digital codes that enable consumers to access digital copies of movies.

“Disney isn’t liking what Redbox is doing to its ‘combo packs,’ which include a Blu-ray disc, a DVD and a code which can be redeemed through authorized digital outlets and is marked ‘not for sale or transfer,'” THR reports.

The report quotes the complaint, filed in federal court in California, saying: “Redbox buys and disassembles the Combo Packs, then rents the discs through its kiosks and sells the Codes separately in violation of this prohibition. In addition, Redbox sells the Codes with the intent that its customers download or otherwise access the motion pictures to which the Codes provide access, with full knowledge that doing so violates the terms and conditions of Plaintiffs’ copyright licenses governing that access.”

THR adds: “Disney says that the codes are offered as a way of providing consumers who utilize physical media the opportunity to access the online entertainment ecosystem. The ‘combo packs’ are discounted for consumers as an incentive to buy both physical and digital, and Disney aims to restrict use through the terms and conditions that govern a purchase.”

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