Disney Files Lawsuit Against Redbox for Illegal Sale of Digital Codes

Disney has filed a lawsuit against Redbox for the illegal sale of digital codes for Disney movie downloads.

In October, Redbox launched a service that allows customers to purchase digital codes for Disney movies.  The codes are printed from the kiosks, along with instructions on how to download or stream the movies to various devices from Disney’s services or affiliated sites.

According to Disney, Redbox is purchasing DVD/Blue Ray Combo Packs, which include digital downloads.  They are then repackaging those digital movies and selling them.  Disney noted that the packaging on the Combo Packs include the notice that “Codes are not for sale or transfer.”

The lawsuit, which was filed Thursday in  federal district court in Los Angeles, alleges copyright infringement and seeks an injunction on Redbox’s sale of its movies. Disney is seeking damages of up to $150,000 per title sold as well as any monies Redbox made from the sale of the codes.

Current titles available for purchase from Redbox include“Cars 3”, “Guardians of the Galaxy Vol. 2”,  “Pirates of the Caribbean: Dead Men Tell No Tales”, and “Rogue One: A Star Wars Story”.  These titles range in price from $14.99 to $4.99.

The news of this lawsuit was first reported by the Wall Street Journal. In a statement issued by Disney they said, “Redbox is selling our digital movie codes in blatant disregard of clear prohibitions against doing so. Their actions violate our contracts and copyrights, and we have filed this action to stop Redbox’s unauthorized conduct.”

In response, a Redbox spokeswoman said, “While we don’t comment on pending litigation, we feel very confident in our pro-consumer position.”

The case number for the suit Disey filed against Redbox is 2:17-cv-08655.  The suit was filed in U.S. District Court for the Central District of California, Western Division, in Los Angeles.

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