Latest in Entertainment

Image credit: Getty Images

Redbox says Disney lawsuit is a baseless attempt to stamp out rivals

The rental company claims selling digital download codes is perfectly legal.
436 Shares
Share
Tweet
Share

Sponsored Links

Getty Images

Last month, Disney filed a lawsuit against Redbox claiming that the rental company was violating Disney's copyrights. Redbox buys the Disney discs it rents at retail and when those discs come with download codes for digital copies, Redbox sells them to its customers. But Disney says that's against its terms of sale and requested an injunction, any profits Redbox made from those sales and $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 $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.

Disney's motion will be heard in a Los Angeles court on February 5th.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
436 Shares
Share
Tweet
Share

Popular on Engadget

Bungie pulls popular gun from 'Destiny 2' after discovering exploit

Bungie pulls popular gun from 'Destiny 2' after discovering exploit

View
Google to fix 'bug' that uploads free full-quality iPhone pics to Photos

Google to fix 'bug' that uploads free full-quality iPhone pics to Photos

View
Instagram test helps you choose people to unfollow

Instagram test helps you choose people to unfollow

View
Qantas completes record 19-hour flight to test limits of air travel

Qantas completes record 19-hour flight to test limits of air travel

View
The best trackballs

The best trackballs

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr