The Walt Disney Company recently filed legal action against Redbox, a movie and video game rental company. The lawsuit mainly involved the unauthorized sale of digital movie codes, which allow consumers to download or stream Disney films.
Digital movie codes sold by Redbox are codes that enable consumers to download and own Disney films legally.
To obtain digital movie codes, Redbox makes their consumers reserve a movie they want to see. Consumers can pick up the code in the numerous Redbox kiosks all over the United States. Consumers can then download and enjoy the films on any device, with Redbox claiming that "once you download the movie, you own it."
However, Disney says that Redbox is selling the codes illegally.
According to the multimedia giant, Redbox purchases Blu-Ray and DVD combo packs, which include digital codes for specific movies. Redbox separates the discs in these packs and makes them available for rent. The digital movie codes included in the combo packs will then be the ones repackaged and offered for sale.
Disney has made it clear that the digital movie codes in the combo packs are not for resale or transfer, and they have asked the court of California to block Redbox from selling these codes. They also accused the rental service of copyright infringement, stating that Redbox is committing a "blatant disregard" for prohibitions stated in Disney's contracts.
Disney is seeking damages of $150,000 for every title sold through digital movie code distribution. In addition, the company also wants Redbox to hand over the money earned through the sale and distribution of said codes.
Redbox does not usually comment on pending litigations, but the company does not seem to be shaken. They say that they are confident because of their "pro-consumer" position.
The Disney lawsuit was filed in the United States District Court for the Central District of California. It has a designated case number of 2:17-cv-08655.
