Redbox and Disney have come to an agreement, ending legal actions against one another which results in the distributor ending its selling of movie codes…
Disney has formally suspended its civil suit against Redbox. The media giant comes out ahead in the agreement, with Redbox refraining from selling Disney movie download codes. This, after Redbox accused Disney of engaging in anti-competitive behavior.
Redbox to Stop Selling Disney Movie Codes according to Terms of a Lawsuit Settlement
The Disney-Redbox lawsuit basically took on the relatively new market of digital downloads. Here, digital media interacted with legacy, physical objects — namely Blu-ray and DVD combo packs.
Disney sells combination packages, which contain a Blu-ray disc, a DVD and a single movie download code. Redbox simply broke apart the combo, breaking the packages into separate purchases — selling the download codes individually and cheaply.
Because of this, Disney claimed such practices were copyright violations. Although, this argument wasn’t enough initially, because of the original packaging terms. To remedy this deficit, Disney rewrote the combo packs’ terms.
The result is Redbox will no longer sell the digital movie download codes separately any longer. The judge wrote:
“Under the old terms, a Combo Pack owner who disposed of the discs was indeed left with a worthless code because continued possession of the discs was a condition of digital access. Now, however, digital access is conditioned not on possession of the discs, but on the manner of Code acquisition.”