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Disney Sues Redbox, Hoping To Block Digital Movie Sales (marketwatch.com)

phalse phace writes: About 1 month ago, Redbox started selling through their kiosks slips of paper with codes on them that lets the buyer download a digital copy of a Disney movie.But Disney says that's a no-no and this week it sued Redbox in an attempt to stop the code sales. According to Marketwatch: "Walt Disney sued Redbox on Thursday in an attempt to stop the DVD rental company from selling digital copies of its movies. Privately held Redbox last month began offering consumers codes they can use to download a digital copy of a Disney movie. Redbox charges between $7.99 and $14.99 for slips of paper with the codes to download Disney films such as "Cars 3" and "Star Wars: The Force Awakens." That is less than those movies cost to buy and download from Apple's iTunes Store. Redbox is only offering digital copies of Disney movies because it doesn't have a distribution arrangement with the studio and buys retail copies of its discs to rent to customers. Those retail DVDs come with digital download codes."

6 of 285 comments (clear)

  1. Re:The codes come with the discs, and are paid for by v1 · · Score: 4, Insightful

    I doubt this will come down to whether or not RedBox is violating the terms. It's more likely to come down to whether or not those terms are legal and enforceable, and that's the angle you'll see RedBox use in their defense.

    I for one find it insulting that I buy something and then am held to some terms of its use. It's mine, I paid for it, and you should have no right to tell me how I'm allowed to use it now that it's my property not yours. So I'd like to see RedBox win this.

    --
    I work for the Department of Redundancy Department.
  2. Re:First Sale Doctrine? by BronsCon · · Score: 4, Informative

    I know the Supreme Court has upheld shrinkwrap licenses, but anyone with any critical thinking ability whatsoever can see how that decision was wrong.

    I shouldn't post this early in the morning. The Supreme Court struck down the shrinkwrap license in the case that made it in front of them. And they were right to do so.

    --
    APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
  3. Re:The codes come with the discs, and are paid for by mysidia · · Score: 4, Insightful

    The codes are only for use by the owner of the disc. You cannot rent, borrow, or covertly steal a code from a friend. You must be the owner of the physical disc.

    Says who? Maybe I bought the disk and refused to agree to any such restriction.
    A product purchased at retail is mine, AND I have the right to re-sell anything i've purchased in whole or in part.

    A retailer or manufacturer cannot legally bundle items together and prevent me from dividing the bundle and reselling --- that is, unless they make me commit to the terms prior to the sale.

  4. Re:But if the box says "no transfers"... by SB5407 · · Score: 4, Insightful

    Both parties state their terms

    Aha! That's the part I have a problem with. The software distributor gets to state their terms, but the potential buyer at the store effectively does not. And, there is no negotiation for consideration and/or terms. Therefore, I would like law and/or jurisprudence to come down and state "There was no negotiation, and therefore, no agreement could have been entered into".

  5. Re:First Sale Doctrine? by alva_edison · · Score: 4, Funny

    seems like their

    they're

    I have brought great shame to my family.

    --
    He effected a bored affect.
  6. Re: First Sale Doctrine? by sexconker · · Score: 4, Interesting

    That's not an argument.

    R buys product X.
    R sells part of X to U.
    D, creator of X, cries foul.

    R has no agreement with D.
    D has no legal claim to X once R buys X.
    D has no right to interfere with transactions between R and U.

    Redbox is buying the discs at retail, pulling the discs and codes, renting/selling the discs and selling the codes.
    They have every right to do this under the first sale doctrine. Disney cannot impose any limitation on what Redbox does with the discs or code slips once Redbox buys them. Redbox is free to do whatever the fuck they want. Worst case, Disney will claim copyright over the code and Redbox will email a picture of the slip of paper immediately and then ship the slip of paper via snail mail for a few cents more. It's the same deal with game download / DLC / demo / etc. access codes given as bundles / swag / promos.