Disney Has Won Injunction Against Redbox For Selling Movie Codes

As of now Disney has won their injunction against Redbox for selling digital movie codes. As of now, those codes can no longer be sold separate from the Blu Ray or DVD they came with.

This has been an uphill battle for Disney but on Thursday a federal judge in California granted a motion for a preliminary injunction.

Almost a year ago Redbox, who operates DVD rental kiosks found in retail stores nationwide, began buying Disney Combo Packs, breaking them apart and selling the digital download codes at a reduced cost.  Disney filed a copyright lawsuit against Redbox at that time.

In February Redbox won their first go-round with Disney. U.S. District Court Judge Dean Pregerson sided with Redbox. He stated the issue the first sale doctrine, allowing someone who legally buys a copyrighted work to sell or dispose of that copy. Disney packaged stated “Codes are not for sale or transfer,” grating Disney power beyond what their copyright covered.

Since that decision Disney had changed the wording on Combo Pack. They have also changed the terms of use on the download sites. And now they’ve amended their complaint.  The first product to reflect this change is Black Panther. New language now states, “Digital code redemption requires prior acceptance of license terms and conditions,” “The digital code contained in this package may not be sold separately” and more.

According to Disney this is now an enforceable “clickwrap” agreement and it required affirmative assent. In response Redbox claims that an restrictions after purchase and not able to be enforced and that no contract was created at the time of the sale.

But this time the judge sided with Disney.

“It is undisputed that Redbox has actual knowledge of the redemption sites’ clickwrap terms, which do appear to create a restrictive license,” he writes.

Redbox continued to maintain their defense the Disney misused their copyright, but again, the judge did not agree.

You can read the entire court document here.

Source: The Hollywood Reporter

Photo Credit: Disney

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