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Redbox Sues Disney, Buena Vista Home Entertainment, Lucasfilm, and Others over Copyright Misuse, False Advertising and Unfair Competition

TimeOmnivore
By TimeOmnivore
in Tech News
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The Legal Document -  https://www.scribd.com/document/370078919/Redbox-Countersuit#from_embed

 

As some of you may remember, Disney sued Redbox a month or so ago for copyright infringement. Now, however, Redbox has gone on the offensive. Redbox is basically suing Disney over the fact that Disney is trying to subvert the "First Sale" doctrine of copyright law - once you buy a product, it's yours, so you can resell, rent, or give it away - by telling consumers, such as Redbox, that reselling/renting is illegal in an attempt to, Redbox says, stifle competition for Disney's own planned digital distribution platform.

 

Some key quotes from the complaint:

Quote

Redbox began adding digital movie downloads to its popular kiosks, allowing customers to buy digital movies at prices lower than those charged by resellers like iTunes or Vudu. Redbox procures digital movie download codes at full retail price (meaning that Disney gets paid) and resells them to customers. This case is about Disney’s unlawful efforts to stifle Redbox’s lawful sales of DVDs, Blu-rays and digital movie codes to Redbox’s customers in an effort to prop up high prices to consumers. Disney wants to eliminate low-cost options like Redbox in order to force consumers to pay as much as possible for Disney’s content, even though Disney is already fully compensated when it first sells that content to a distributor or retailer.

...

Why would Disney do this? In part, it is because Disney believes it can command a higher premium in the short term from its distributors and retailers when they sell at higher prices. But primarily, Disney is laying the groundwork for its own “direct to consumer” model. Disney’s acquisition of a majority interest in digital distributor Hulu as part of its $52 billion acquisition of 21st Century Fox, and its separate plans to launch an additional streaming service in 2019, are major components of that move. Defendant Movies Anywhere, as the successor to Disney Movies Anywhere, also recently launched a digital content service. This explains why Disney wants to keep retail prices for its titles as high as possible. Disney wants to sell its content at the higher prices it is trying to condition consumers to expect, rather than the lower prices they can get from Redbox.

...

Disney has taken a number of specific—and unlawful—steps to stop Redbox from lawfully selling what Redbox lawfully purchased. First, on information and belief, Disney is effectively orchestrating a campaign to prevent Redbox from purchasing enough Disney titles to meet its consumer demand. For example, on information and belief, Disney’s own distribution company, Defendant BVHE, has placed provisions into its contracts with retailers prohibiting them from selling copies of Disney movies to Redbox. On information and belief, BVHE has also taken the extraordinary step of reducing the number of movie copies it allocates to distributors believed to sell to Redbox to prevent them from fulfilling Redbox’s orders.

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In addition, BVHE and Movies Anywhere have falsely stated or implied on their products, packaging, and websites, as well as to the press, that Redbox’s rental and sale of Disney titles is unlawful. Specifically, BVHE and Movies Anywhere falsely state that a purchaser may not rent or resell the individual components of the Combo Pack—including the discs—and that Redbox’s sales of the digital movies are unauthorized and violate Disney’s contracts and copyrights. On information and belief, for at least the past five years, every Combo Pack distributed by BVHE, including for Beauty and The Beast, Cars 3, and Frozen, contains the following language on the back of the jewel case: “This product is authorized for private use only. It is prohibited for any other use and cannot be resold or rented individually. All other rights reserved. Unless expressly authorized in writing by the copyright owner, any copying, exhibition, export, distribution or other use of this product or any part of it is prohibited.” Disney knows that these representations are false.

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Disney’s attempt to control the disposition of the Combo Pack components, even after Disney sells the DVD, Blu-ray disc, and digital movie to a Disney-authorized distributor or a retailer, is an illegal abuse of its copyrights and dominant position in the industry.

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Redbox therefore brings this action to stop Defendants’ unlawful conduct, seeking a declaration that Defendants cannot enforce their attempts to restrict rental and resale of their products, an injunction, compensation for Redbox’s damages, recoupment of Defendants’ wrongfully-gained profits, punitive damages, and Redbox’s fees and costs incurred in bringing this action.

 

 

Also, here's a video Leonard French, a well-respected copyright attorney, put out on the subject:

 

What are your thoughts on this? Personally, I hope Redbox wins this case - you should absolutely have the right to resell, or otherwise get rid of, products you have purchased. Disney shouldn't have the power to subvert copyright law - which they themselves fought so hard for - for their own gain.

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2 minutes ago, VegetableStu said:

ftfy

Fair enough. :)

They were listed separately as defendants in the complaint, so I figured I may as well list them out here as well, though I gave up about halfway through since the title was getting a bit too long.

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Why am I not surprised that Disney are once again trying to change copyright law to suit their own agenda.

Oh right, because the current copyright laws in the US were basically written by Disney. It's mind boggling that Disney have had so much power and over the US laws as they have throughout the years.

Fuck them. Disgusting leeches which built their entire media empire on public domain works and now try their hardest to ruin things for everyone else.

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Just now, LAwLz said:

Oh right, because the current copyright laws in the US were basically written by Disney. It's mind boggling that Disney have had so much power and over the US laws as they have throughout the years.

2

Since bribery is legal here, it makes sense that a lot of these laws were basically written by large corporations, such as Disney. It gets really annoying though when these companies then try to pick and choose which parts of the law they actually feel like following and which they just pretend don't exist, or even just outright say that the opposite of the law is what's actually true.

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Disney is starting to become a monopoly. Don't get me wrong Pixar and dreamworks make great movies that any age can enjoy

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Posted

I really hope redbox wins this. If they don't, it's really sad how bribed our entire government is. 

Fanboys are the worst thing to happen to the tech community World. Chief among them are Apple fanboys. 

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3 minutes ago, Ginger137 said:

I really hope redbox wins this. If they don't, it's really sad how bribed our entire government is. 

Disney already does that to lengthen how long they can keep the copyright for Mikey Mouse every time they are about to lose the exclusive rights to it. They where able to lengthen it 3 times, and by 2023 they may influence it to be lengthen it again.

 

https://atp.orangenius.com/how-mickey-mouse-keeps-changing-copyright-law/

if you want to annoy me, then join my teamspeak server ts.benja.cc

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REDBOX ANGRY. REDBOX SMASH!!!!

"If a Lobster is a fish because it moves by jumping, then a kangaroo is a bird" - Admiral Paulo de Castro Moreira da Silva

"There is nothing more difficult than fixing something that isn't all the way broken yet." - Author Unknown

Spoiler

Intel Core i7-3960X @ 4.6 GHz - Asus P9X79WS/IPMI - 12GB DDR3-1600 quad-channel - EVGA GTX 1080ti SC - Fractal Design Define R5 - 500GB Crucial MX200 - NH-D15 - Logitech G710+ - Mionix Naos 7000 - Sennheiser PC350 w/Topping VX-1

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Selling the digital code that comes with a physical movie separately is super sketch though.  I imagine RedBox will be hard pressed to find a jury that would think otherwise.  I'd prefer to not have laws get stronger in terms of different formats as different licenses.  I want to legally be able to convert my disc to any format I want so I can watch a lossless version on PC/HTPC while also able to have a potato quality version for mobile apple device(s) for consumption on trips.

 

IDK, it's interesting.  Disney surely hasn't been able to keep the movies they made this expensive since... forever, by playing on the level either.

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If Redbox is paying full retail price for digital movie codes for downloads and selling them to their customers at discount, then how the hell are they making a profit on that operation. Sure they can buy a DVD or Bluray and rent it out many times to their customers to make up the cost of both physical and digital media but if their customers start purchasing far more digital codes their business model will fail. I would hate to be a long term investor in that company.

 

As for Disney, if current copyright law allows such practices to occur then it is up to Disney to lobby the government to again change the law in their favor. I just hope that doesn't actually happen.

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10 minutes ago, x3x53530 said:

If Redbox is paying full retail price for digital movie codes for downloads and selling them to their customers at discount, then how the hell are they making a profit on that operation. Sure they can buy a DVD or Bluray and rent it out many times to their customers to make up the cost of both physical and digital media but if their customers start purchasing far more digital codes their business model will fail. I would hate to be a long term investor in that company.

If I had to guess (and this is pure speculation on my part), they probably have a mechanism forcing a certain number of rentals before the titles can be purchased.  But as I said, that's just a guess.

https://linustechtips.com/main/topic/449522-smoking-barrels-ltts-unnofficial-gun-club/

 

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