Disney Sues Redbox, Hoping to Block Digital Movie Sales

Megalith

Megalith

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Disney has sued Redbox in an attempt to stop the DVD rental company from selling digital copies of its movies. It 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.”

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. Redbox receives special copies of DVDs and Blu-ray discs from other studios with which it has deals that don’t contain digital codes.
 
Huh interesting.. didn't know they could use retail copies! Why then don't put more stuff?
 
zamardii12 said:
This doesn't make sense. Redbox is buying Disney's movies for full retail so they should be able to sell those digital codes if they want to. Disney is a bunch of greedy bastards.
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Ehh well the codes are more for the ower of the dvd.. a form of dvd ripping but corporate approved, so i don't know, redbox might lose, not that I give a crap about Disney.
 
Uvaman2 said:
Ehh well the codes are more for the ower of the dvd.. a form of dvd ripping but corporate approved, so i don't know, redbox might lose, not that I give a crap about Disney.
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Then Redbox would be the owner. Which is my point. Being the owner once Disney has already gotten money for the initial sale should have no say in the resale.
 
Yeah I just went ahead and looked at my unused Rogue One code. Says right in the fine print not for resale or transfer. Redbox is almost certain to lose.
 
Nolan7689 said:
Yeah I just went ahead and looked at my unused Rogue One code. Says right in the fine print not for resale or transfer. Redbox is almost certain to lose.
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Redbox will absolutely lose. Just because something should be a certain way, doesn't mean it is. I just can't believe Redbox didn't see this coming. Any competent lawyer, or their secretary, versed in media licensing would have told them that you simply do not cross the house of mouse.
 
when you buy a movie disc, you don't really own it. you have a license to view it yourself or some shit like that.

I forget what, but there was a debate about ownership rights about something similar.
 
This is really going to come down to how the judge views the First-sale doctrine.

https://gizmodo.com/redboxs-crafty-workaround-for-stocking-disney-movies-ba-1820925295

The resell of digital copies has been controversial in the last few years. In 2016, a judge ruled that the first-sale doctrine didn’t apply in a case of people reselling music files they’d downloaded from iTunes because transferring digital files from one storage device to another constituted unauthorized reproduction. But if a person just sells a one-time use download code, nothing is being reproduced.

https://en.wikipedia.org/wiki/First-sale_doctrine
 
hurleybird said:
I can add fine print that says a consumer owes me their first born child. Doesn't mean it's enforceable.
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That’s because you aren’t Disney.
Damar said:
This is really going to come down to how the judge views the First-sale doctrine.

https://gizmodo.com/redboxs-crafty-workaround-for-stocking-disney-movies-ba-1820925295

The resell of digital copies has been controversial in the last few years. In 2016, a judge ruled that the first-sale doctrine didn’t apply in a case of people reselling music files they’d downloaded from iTunes because transferring digital files from one storage device to another constituted unauthorized reproduction. But if a person just sells a one-time use download code, nothing is being reproduced.

https://en.wikipedia.org/wiki/First-sale_doctrine
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That’s why I said almost certainly lose. They have a chance but given the amount of control Disney exerts I don’t see the judge having much in the way of original thoughts.
 
Kdawg said:
when you buy a movie disc, you don't really own it. you have a license to view it yourself or some shit like that.

I forget what, but there was a debate about ownership rights about something similar.
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there is no EULA when watching a movie.

agreement is never signed.

their "license" isn't worth jack shit,
 
Doesn't have to be signed. you give implied agreement when you keep the disc. Otherwise you can return the disc to the store if you don't agree.

i just googled, and sleeping beauty bluray has 57 pages of EULA. Disney is crazy.
 
zamardii12 said:
This doesn't make sense. Redbox is buying Disney's movies for full retail so they should be able to sell those digital codes if they want to. Disney is a bunch of greedy bastards.
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I think the issue is that they're renting the movie out and then selling the code.

Maybe things have changed, but I didn't think you were allowed to rent out retail DVDs and I'm sure there is a prohibition somewhere in the EULA that prevents selling the digital copy of the movie separately.

Not that I feel particularly bad for Disney but I can understand their frustration.
 
151223763810hif1uyt2_1_1.jpg


Why is she staring at the posters while pressing the screen? This just seems like a way to end up with the wrong movie.
 
Nolan7689 said:
Yeah I just went ahead and looked at my unused Rogue One code. Says right in the fine print not for resale or transfer. Redbox is almost certain to lose.
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Does it say the code or the film is not for resale or transfer?
 
Zepher said:
Does it say the code or the film is not for resale or transfer?
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Yes.

It gets just slightly fuzzy. In one instance a paragraph started with “Digital Copy” has a single sentence in the middle of it “Not for resale.” Arguably you could say you didn’t retreat it referred to the code. It’s a flimsy argument.

On the other side of the cardboard below the code it specifically says “Codes are not for sale or transfer.” Which is pretty black and white on where Disney stands about its codes regardless of first sale doctrine.
 
Yes, Disney is super greedy! My wife works with disabled children and adults to help acclimate them into society. The majority of her clients are very low income and can't even afford to go to the movies. Until a few months ago, she had an agreement with the local town theater to bring her clients in, on occasion, to watch a movie at a reduced rate. That was until a representative from Disney found out about the theater's doings and forbid them to give discounted rates because it "devalued" their films. She can still bring her clients in to watch movies, but if it's a Disney movies, it's full price. How crappy is that? Needless to say, I will never support Disney again.
 
OregonLAN said:
Yes, Disney is super greedy! My wife works with disabled children and adults to help acclimate them into society. The majority of her clients are very low income and can't even afford to go to the movies. Until a few months ago, she had an agreement with the local town theater to bring her clients in, on occasion, to watch a movie at a reduced rate. That was until a representative from Disney found out about the theater's doings and forbid them to give discounted rates because it "devalued" their films. She can still bring her clients in to watch movies, but if it's a Disney movies, it's full price. How crappy is that? Needless to say, I will never support Disney again.
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tenor.gif
 
Boycotting Disney is like boycotting strip clubs. Sure it might be a good thing to do but I'm still going to spend my money on entertainment.
 
Just because it says not for resale doesn't mean it's illegal to resell it. What you think that the little blurb on your product is law?
 
Redbox employees should just sell the digital codes online on the down low...Craig's List or Ebay...
 
I like that picture, the chick looks so happy to be using a kiosk instead of actually being able to go into a store of some kind that rents movies with an actual selection.

I don't miss Blockbuster, but I do miss video rental stores. I would totally own one if I could figure out how to make a profit doing it. I've always wanted my own Uncle Billy's Blu-Ray Barn franchise.
 
Nolan7689 said:
given the amount of control Disney exerts I don’t see the judge having much in the way of original thoughts.
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Golden rule. He who has the gold, makes the rules. The secret's been out for a while, ever since the DMCA was approved.

And the law overturning copyright limitations; initially 100 years seemed perfect....until mickey mouse was about to turn 100. Then Disney stepped in and all of a sudden, copyrights get extended.
NeoNemesis said:
Maybe things have changed, but I didn't think you were allowed to rent out retail DVDs and I'm sure there is a prohibition somewhere in the EULA that prevents selling the digital copy of the movie separately.
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and
SonicTron said:
Just because it says not for resale doesn't mean it's illegal to resell it. What you think that the little blurb on your product is law?
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We've got to stop everything from becoming a 'rental' that you only pay a license to use. You purchase a product you keep, then you own it. Not a license to use it until you're dead. But since it seems that congress will do whatever their billionaire masters tell them, the rest of us are all screwed.
 
nightfly said:
We've got to stop everything from becoming a 'rental' that you only pay a license to use. You purchase a product you keep, then you own it. Not a license to use it until you're dead. But since it seems that congress will do whatever their billionaire masters tell them, the rest of us are all screwed.
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You do own the DVD, you just don't own the content on the DVD. It sucks, but the alternative is just as bad.

If you actually received ownership of the content you would be free to duplicate it and distribute it as you see fit.
 
OregonLAN said:
Yes, Disney is super greedy! My wife works with disabled children and adults to help acclimate them into society. The majority of her clients are very low income and can't even afford to go to the movies. Until a few months ago, she had an agreement with the local town theater to bring her clients in, on occasion, to watch a movie at a reduced rate. That was until a representative from Disney found out about the theater's doings and forbid them to give discounted rates because it "devalued" their films. She can still bring her clients in to watch movies, but if it's a Disney movies, it's full price. How crappy is that? Needless to say, I will never support Disney again.
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All you gotta do is look at how wealthy the citizens of Anaheim, CA are. They aren't lol. They're at the lower end of the spectrum and for a city hosting a gargantuan co. like Disney that promises prosperity in return for hosting them, its a lie. They don't even pay their taxes.
 
zamardii12 said:
This doesn't make sense. Redbox is buying Disney's movies for full retail so they should be able to sell those digital codes if they want to. Disney is a bunch of greedy bastards.
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Depends on the license. It may be that the license is only legal if you own the Disk. Obviously for individuals, it's hard to prove it, unless it's sold on a public forum...but redbox is a different story.. My guess is the license doesn't allow them to do this and they'll ultimately lose. If they don't, then we may see the end of digital copies (not that I've ever downloaded one of those)
 
nilepez said:
Depends on the license. It may be that the license is only legal if you own the Disk.
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I think first sale doctorine would still trump this. Because other wise companies could just put licenses in everything and bypass nearly all consumer protection laws. You can't just put a sign on the back of your truck that says not responsible for window damage and then not be liable for any window damage.
 
I love that Redbox has been a thorn in the movie industries side with the First Sale Doctorine. One of the few victories for the consumer with this stuff. And they have used it repeatedly to force the studios to cut deals.
 
westrock2000 said:
I love that Redbox has been a thorn in the movie industries side with the First Sale Doctorine. One of the few victories for the consumer with this stuff. And they have used it repeatedly to force the studios to cut deals.
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Netflix more often than not has to wait 30 days for new movies to be rentable. Is Redbox avoiding that now?
 
Ranulfo said:
Netflix more often than not has to wait 30 days for new movies to be rentable. Is Redbox avoiding that now?
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They have in the past by purchasing the movies as retail. It was a brute force method. However the studios give in and provide them with the "rental" versions you often see in Redbox. But yes, Redbox has famously been doing this for years. They buy a bunch of legitimate copies and rent them out, and the First Sale Doctorine says the studios can't do shit about it. But the studios will offer discs at a discount rate, in exchange for giving them more time between retail release and Redbox release. Because that's what the studios want. They want you to buy it, not rent it.
 
Spidey329 said:
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Why is she staring at the posters while pressing the screen? This just seems like a way to end up with the wrong movie.
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I understand your point, but technically, she's just a model posing for a picture I bet.
 
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