Redbox Says Disney’s Lawsuit is Baseless

Redbox Says Disneys Lawsuit is Baseless

Disney filed a lawsuit against Redbox in January 2018, claiming that the rental company was violating Disney’s copyrights.

Redbox buys Disney discs it rents at retail and when those discs come with download codes for digital copies, Redbox sells them to its customers.
Disney says that selling its discs is against its terms, further requesting an injunction, any profits Redbox made from those sales and US$ 150,000 per copyright infringement.
Redbox has now clapped back, Variety reports, filing an opposition to Disney’s complaint and injunction request.
In its argument, Redbox says that Disney’s request has no legal basis and that the lawsuit is just an attempt to hurt its competition.

“By this motion, Plaintiffs seek to stifle competition to more smoothly launch Disney’s own digital content streaming service, maximize the price other services like iTunes and Amazon (and their customers) pay for Disney movies, and secure a greater market share for Hulu — the viewing service Disney will control as part of its $52 billion acquisition of 21st Century Fox,” said Redbox. It also calls Disney’s methods “anti-consumer” and “anti-competitive.”
Redbox says that it’s protected by the first-sale doctrine, which allows for the resale of used items such as DVDs, and that the doctrine applies to the resale of the download codes. It also said in its opposition that it had invested over US$ 700,000 and a year’s worth of work into setting up its system to sell digital movie download codes and that an injunction would significantly harm the company.

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