In the latter case, the studio alleges that the customer is creating a new copy of the film, and that Disney’s copyright protections should apply. Redbox has also argued that the digital download codes should be treated no differently than physical discs, which the kiosk company is allowed to re-sell under the “first-sale doctrine.” Disney argues that there is a significant difference between re-selling a DVD and downloading a digital file.
Redbox has filed its own suit against Disney, alleging that the studio has engaged in anti-competitive tactics in its years-long effort to freeze out a low-cost competitor. “Absent an injunction, Redbox will continue to sell codes for Disney’s next combo pack release (‘Black Panther’) and releases after that ad infinitum.” “Within the last month, Redbox started selling Codes for ‘Coco’ and ‘Thor: Ragnarok,'” Disney’s attorneys said in a motion on Monday.
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