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Businesses Entertainment

Disney Loses in Redbox Copyright Row (bbc.com) 164

Disney has lost a bid to stop movie rental company Redbox from reselling download codes for its films. From a report: Redbox bought Disney movies on DVD to offer for rental in its kiosks. The DVDs were often bundled with a code to download a copy of the film. Disney requested an injunction to stop the practice, saying that Redbox had no business arrangement with it. A California federal judge accused Disney of "copyright misuse." Redbox rents and sells movies via tens of thousands of automated kiosks that dispense DVD and Blu-ray discs.
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Disney Loses in Redbox Copyright Row

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  • by Zorro ( 15797 ) on Thursday February 22, 2018 @01:56PM (#56170603)

    Darth Mouse Strikes Back!

    • by msauve ( 701917 )
      Disney, copyright misuse? That's a tautology.
    • Sounds like attack if the clones

    • vidAngel got shut down (newly re-emerged) for renting DVD streams online. This actually seems far more of a step over the line than what vidAngel did. I guess the difference is the size of the Lawyer budget.

      • Re: (Score:3, Informative)

        No. What Redbox is doing is selling a slip of paper with a code on it. They own the piece of paper, it came with the DVD's and Blu-rays they purchased. It's arguably no different than reselling anything else that you don't plan on using, and is ACTUALLY protected by first sale doctrine.

        What vidAngel was doing was editing movies to remove objectionable content, without the copyright holder's permission, and then streaming those edited videos. They were also circumventing copy protection (in violation of the

  • Copyright misuse? (Score:3, Insightful)

    by Anonymous Coward on Thursday February 22, 2018 @01:56PM (#56170605)

    A judge ruled against Disney on a copyright case?

    Please send him gifts, chocolates, etc!

  • for instance in the proprietary software and licensing business, or if this was a straightforward case.
    Any experts?
    • Not an expert, but:

      Copyright is about the right to copy (there's a cunningly hidden clue in the name) - in this case, Redbox haven't copied a thing - just re-sold original goods they've bought from Disney or their authorised distributors, so there's no obvious copyright violation. I think that's the 'copyright abuse'. The Judge has found that the text on the box doesn't create an enforceable contract not to re-sell the codes - but its not clear from TFA that this is a general finding or if Disney just stu

    • by UnknowingFool ( 672806 ) on Thursday February 22, 2018 @04:05PM (#56171295)
      No. Unlike what the title implies, Disney did not lose the case. Disney lost its motion for a preliminary injunction to stop Redbox from selling the codes. Next, the court has to address Redbox's motion to dismiss. If Disney loses that one, then they are closer to losing the case setting some precedent. If Disney wins, then there is still a court case to go through.
  • by Khyber ( 864651 ) <techkitsune@gmail.com> on Thursday February 22, 2018 @02:15PM (#56170729) Homepage Journal

    Sorry, Disney. Redbox actually buys retail copies. If you didn't want them reselling what's legally theirs, you should've actually fucking cooperated and given them license to distribute instead of forcing them to go this route, which has obviously bitten you in the ass.

    • by CODiNE ( 27417 )

      You'd think, good luck selling those codes on eBay though. Hope this changes their policy in line with the actual law.

    • by R3d M3rcury ( 871886 ) on Thursday February 22, 2018 @03:25PM (#56171073) Journal

      Actually, the question comes down to "what did you buy?"

      Disney feels that what they sold was the movie. You have two ways of watching it--disk or download. But the movie remains the same and that's what you paid for.

      Redbox feels that what they bought was the disk & the download code. They stick the disk in their kiosks and resell the download code because they don't need it and it defrays the cost of buying the disk through retail.

      Disney would be fine if they resold the disk and the download code. But reselling the download code and keeping the disk is akin to making a copy.

      The Judge, it appears, basically says, "Your contract doesn't say that, so you lose."

      • by Anonymous Coward

        Redbox could buy books and sell the pages one by one if they like. There is nothing "akin" to making a copy they are selling two separate things that they bought for cash. Disney can take a long jump onto a short sword for all I care. They don't get to make up laws by writing them on paper.

      • Re: (Score:3, Insightful)

        by Anonymous Coward

        Disney would be fine if they resold the disk and the download code. But reselling the download code and keeping the disk is akin to making a copy.

        The Judge, it appears, basically says, "Your contract doesn't say that, so you lose."

        Not quite. The judge actually said, "just writing something down doesn't make it true." Your ability to buy a legal copy and then resale it trumps the notion that Disney can choose how or if their sold works are re-sold.

        The notion of one piece of work bundled in two formats is only interesting in this case because one of the formats is purely digital. If we had been two different physical media being bundled together -- say, those Blu-Ray/DVD dual-disc packs -- that Disney had sued to keep off the secondary

      • Disney feels that what they sold was the movie.

        Luckily the US justice system hasn't devolved to the point where "feels" actually count when determining the facts of a case. Those show up later in criminal trials, and not at all in civil trials.

      • Disney feels that what they sold was the movie. You have two ways of watching it--disk or download. But the movie remains the same and that's what you paid for.

        I'll agree with this line of reasoning when Disney upgrades my VHS collection of Disney movies to digital at no charge. After all, by the reasoning above, I already paid for the movies, and the form they're in doesn't matter, right?

  • by Anon-Admin ( 443764 ) on Thursday February 22, 2018 @02:20PM (#56170753) Journal

    Back many years ago a local store used to rent software. You could come in and rent just about anything from a set of OS disks to MS word or the latest game. If you liked the title you could keep renting it or just pay the cost of the title.

    They also bought the software that they rented/sold.

    They were sued for copyright infringement and put out of business. Fast forward 25 years and the court is going the other way.

  • I'm constantly expected to "admit" I'm wrong when the facts show that I'm not. Is everyone who argued with me when news of this lawsuit first broke and insisted that I admit to being "wrong" about how this would turn out (and why it would turn out that way) going to show up here and admit that they were, in fact, wrong? After all, it turned out exactly as I said it would; and for the very reasons I stated.

    Somehow, though, the whole lot of trolls who like to try to pick me apart here will still insist that
  • Disney is the very definition of copyright abuse.

  • by MobyDisk ( 75490 ) on Thursday February 22, 2018 @04:55PM (#56171747) Homepage

    In a 26-page order, Judge Pregerson said that the wording on the packaging did not create an enforceable contract.

    That's huge, because so far judges have been willing to enforce shrink-wrap licenses as contracts. Does anyone have a link to the order, because I want to understand when such licenses are valid and when they are not.

    Somewhat related, what is the legal status of renting out retail-purchased DVDs? I thought that was illegal. A quick internet search results in multiple seemingly-authoritative answers, all in complete conflict.

    • That's huge, because so far judges have been willing to enforce shrink-wrap licenses as contracts.

      The judge didn't throw out the shrink-wrap license theory. He found that Disney's packaging failed to establish a recognizable shrink-wrap license.

      Disney DVD packaging is about to become substantially more obnoxious...

  • by jwhyche ( 6192 ) on Thursday February 22, 2018 @05:38PM (#56172177) Homepage

    The last video express in my home town finally closed down a few years ago. It was the last place you could go to actually rent a movie in a store. Then outside the corpse of the old store the dropped a redbox.

  • Nice to see the house of mouse loosing at least one copyright battle

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