This week Disney sued Redbox in an attempt to block them from selling digital versions of Disney movies. This is the latest in a battle between Disney and Redbox.
Disney does not supply Redbox with copies of their DVDs. Redbox gets around this by buying full price copies of Disney DVDs. These DVDs come with codes for digital versions of the Disney movies. Redbox has been turning around and selling the digital codes for less than what you can get them for from other digital movie stores.
Redbox has deals with other movie studios that sell less expensive DVDs of their movies without the digital codes to Redbox.
Now Disney is suing to block the sale of the digital codes separate from the DVDs.
This will be a real test of one’s rights to resell digital content. In this case, it is digital content sold with a DVD but not claimed. This case could very well set a precedent for such sales going forward.
Many movie studios are watching the case closely to learn the courts take on the legality of reselling digital video copies of movies.
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