Disney sues Redbox over its sale of digital download codes

By Shawn Knight ยท 8 replies
Dec 1, 2017
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  1. Redbox ruffled feathers a couple of months back when it started selling discounted digital download codes for Disney films despite not having a formal relationship with the studio. Now, Disney is firing back… in the court room.

    Disney told Variety that Redbox is selling its digital movie codes in blatant disregard of clear prohibitions against doing so. Their actions, the statement reads, violate contracts and copyrights and have forced Disney to file suit to stop the unauthorized conduct.

    A spokesperson for Redbox said that while they don’t comment on pending litigation, they feel very confident in their pro-consumer position.

    Disney, which hasn’t had a direct distribution deal with Redbox since 2012, filed its lawsuit in a federal district court in Los Angeles. It alleges copyright infringement and is seeking an injunction on Redbox’s sale of Disney movies. Disney is also asking Redbox to hand over money it has made thus far in addition to damages of up to $150,000 per title sold.

    According to the suit, Redbox buys Disney DVD and Blu-ray disc “Combo Packs” which include a code for accessing digital copies of said films. Redbox then rents out the discs and repackages the codes for resale. Disney’s packaging apparently states that “codes are not for sale or transfer.”

    Redbox is currently offering digital codes for Disney movies such as Cars 3 ($14.99), Inside Out ($3.99) and Star Wars: The Force Awakens ($7.99). Kiosks dispense printed codes with information on how to stream or download titles from Disney services or affiliated sites.

    Permalink to story.

  2. EClyde

    EClyde TS Evangelist Posts: 1,480   +522

    Tough rocks on both of them
  3. OutlawCecil

    OutlawCecil TS Guru Posts: 425   +266

    Disney is so greedy lately but unfortunately, it sounds like Redbox is going to lose this battle...

    These laws are just stupid. If I buy a DVD, I can sell it at a garage sale with no issues. If I buy a "digital download" and try to sell it, I get sued. Wait, do I own it or not? 'Cause anything else I own is mine to sell. Stupid laws like this is why people pirate this crap nowadays.
  4. TheBigT42

    TheBigT42 TS Maniac Posts: 263   +140

    Unfortunately they way EULAs are written...you don't own them...you purchased a license to use.
  5. MoeJoe

    MoeJoe Banned Posts: 837   +440

    ESPdisNey is garbage.

    Cut the cord, ban the flicks.
    Problem solved.
    Misagt likes this.
  6. Evernessince

    Evernessince TS Evangelist Posts: 2,788   +1,920

    Consumer protection laws take precedence over any EULA. If it's decided in court that it does indeed infringe on consumer rights, that the EULA will be disregarded.

    In this case it could turn out any way.
  7. Bao Nguyen

    Bao Nguyen TS Booster Posts: 68   +42

    You're right when saying it could turn out any way because consumer protection laws will only go as far as not to conflict with intellectual property protection laws.

    In this case looks like Redbox sells digital copy that comes with physical copy without paying Disney anything for their IP not to mention not allowed to do so.
  8. Evernessince

    Evernessince TS Evangelist Posts: 2,788   +1,920

    They purchased them in the first place, so Disney did get paid.

    "You're right when saying it could turn out any way because consumer protection laws will only go as far as not to conflict with intellectual property protection laws."

    It's the other way around actually. If you have congressmen making laws around IP, then you have a bigger issue. Consumer Protection laws were put their in the first place to clash with IP laws, because they are to protect the customer for predatory practices that take place. For example, the "warranty void if removed" stickers are completely invalid in many countries. Everyone knows shrinkwrap warranties are a load of garbage as well.
    OutlawCecil and Reehahs like this.
  9. Reehahs

    Reehahs TS Guru Posts: 641   +371

    What a shame, I should be allowed to transfer the license I have purchased because that instance of the license is my property.
    OutlawCecil likes this.

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