Disney Gets Beat-up By Redbox

In a court ruling last week, Disney was found libel for committing copyright misuse. Then, quickly re-grouping, made changes in the way it licenses its content online and re-applied for a new injunction aimed at preventing Redbox from selling movie download codes.  Disney contends that Redbox is violating its copyrights by disassembling "Combo Packs" - a Blu-ray disc, a DVD, and a movie download code which can be redeemed through authorized digital outlets.

Disney lost in its first motion for a preliminary injunction against Redbox. In that case, Judge Dean Pregerson found that there was no dispute Disney couldn't prevent consumers from transferring Blu-ray discs and DVDs contained within Combo Packs. Citing a copyrights first sale doctrine that provides that someone who lawfully acquires a copyrighted work is entitled to sell or dispose of their copy.  The judge found that Disney's restrictive license terms given them "giant power beyond the scope of its copyright to works like Star Wars and Frozen. Combo Pack purchasers can not access digital movie content, for which they have already paid, without exceeding the scope of the license agreement unless they forego that right."

This whole mess puts Disney in a bad position as Redbox readies to sell a Combo Pack for Black Panther and after that all movie content.

Jim Lavorato