Redbox gains an upperhand in business litigation against Disney

Most California movie watchers are familiar with The Walt Disney Co. The entertainment giant and Redbox, a movie rental company, have been battling out a few issues in court. The business litigation appears to have tipped the scales to Redbox's favor following a federal judge's recent ruling. A central focus of the legal dispute is whether Redbox has infringed upon Disney's rights by selling download codes for Disney movies in its red kiosks, stationed at various locations throughout the country.

The judge denied Disney's petition for a preliminary injunction against the movie rental company. Redbox has apparently incited Disney's anger by selling download codes to very recent, top selling Disney releases, not cartoons from decades past. Interestingly, companies do not have an existing licensing contract between them.

One may wonder how Redbox is able to obtain the download codes to Disney movies in order to sell the codes at its kiosks. The company reportedly purchases hard copy Disney combo packs from retail stores. It then obtains the codes (written numerically on slips of paper included in the packages) and repackages them for sale in movie boxes at supermarkets and convenience stores. In many locations, the codes cost consumers less than $8.

The judge presiding over the business litigation situation determined that although Disney's combo pack states that the codes are not for sale or transfer, the company failed to include language that specifically alerts consumers that opening the package constitutes an agreement to the license restrictions contained therein. The judge ruled that, in light of that fact, the license restrictions are not legally enforceable. Legal disputes are often complex and difficult to resolve; California business owners do well to retain experienced assistance from business and commercial law attorneys before addressing such issues in court.

Source: Los Angeles Times, "Disney dealt setback in Redbox copyright dispute", Ryan Faughnder, Feb. 21, 2018

No Comments

Leave a comment
Comment Information
Set up an Initial Consultation »

Need Our Help?

Contact us today to set up an initial consultation with an attorney in Truckee, Sacramento, Reno, Tahoe City, South Lake Tahoe/Zephyr Cove, or Incline Village/Crystal Bay. We can be reached at 530-214-0385. Or send us an email.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations – For an Appointment, Call 530-214-0385

Truckee Office
10280 Donner Pass Road
Truckee, CA 96161

Phone: 530-214-0385
Fax: 530-214-8158
Truckee Law Office Map

Sacramento Office
1830 15th Street
Suite 100
Sacramento, CA 95811

Phone: 530-214-0385
Fax: 916-848-3500
Map & Directions

Reno Office
527 S. Arlington Avenue
Reno, NV 89509

Phone: 530-214-0385
Fax: 775-201-1444
Map & Directions

South Lake Tahoe/Zephyr Cove
212 Elks Point Road
Suite 553
Zephyr Cove, NV 89448

Phone: 530-214-0385
Fax: 530-214-8158
Map & Directions

Tahoe City Office
305 West Lake Blvd.
Suite 104
Tahoe City, CA 96145

Map & Directions

Incline Village/Crystal Bay
22 State Highway 28
Crystal Bay, NV 89402

Map & Directions