Redbox obtained these codes from combo packs that Disney provides to consumers which includes a Blu-ray disc, a DVD, and a code for digital access. However, each combo pack states that the digital codes are “not for sale or transfer”. Disney has sued Redbox for intently violating the conditions of the copyright license of the digital codes they illegally provided their customers.
Disney clarifies that the codes are for the customers use as an incentive to buy the combo packs at a discounted rate so that the customer purchases both the physical and digital copies of the movie.
Furthermore, Disney is also accusing Redbox of being liable for copyright infringement and violating California’s false advertising law for being unauthorized to reproduce copyrighted works to its customers through digital downloads resulting in “unlawful” resale of the codes.
In addition, Disney is accusing Redbox of unlawfully interfering with Disney’s contractual relationship with RedeemDigitalMovie.com by redeeming the codes to customers “who do not own the physical product”.
Thank you Bhavini for your contribution to this article.