This time, the district court granted Disney’s request, finding that Disney’s revised language created a restrictive license because it limited Combo Packs to “personal use” and provided that the codes “may not be sold separately and may be redeemed only by recipient of this combination package or a family member.” The court held that, because Redbox affirmatively instructed customers to purchase and redeem download codes in violation of the terms of use, Disney demonstrated a likelihood of success on the merits of its contributory infringement claim. Disney subsequently revised its terms of use and language printed on the Combo Packs, filed an amended complaint, and moved for a preliminary injunction.
(Read our summary of the court’s decision here). Disney sued Redbox, alleging that Redbox’s resale of Combo Pack digital download codes constitutes contributory copyright infringement, insofar as it encourages end users to make unauthorized reproductions of Disney’s copyrighted works.ĭisney moved for a preliminary injunction enjoining Redbox from selling or transferring the digital download codes, but the district court initially denied the motion, based on Disney’s terms of use on the streaming sites and the specific language printed on the Combo Packs, which stated that only the owner of a physical DVD could use the code. In 2017, Redbox, which does not have a vendor agreement with Disney, began selling the individual download codes from the Combo Packs at its kiosks.
Among Disney’s offerings are “Combo Packs,” which are sold in boxes featuring large-type text reading “Blu-ray + DVD + Digital HD,” and include a Blu-ray disc, a DVD and a piece of paper containing an alphanumeric code that can be inputted and redeemed at the websites and to allow a user to stream and download the film in digital HD.įor many years, defendant Redbox Automated Retail LLC, a company that rents and sells movies to consumers through tens of thousands of automated kiosks, purchased the Combo Packs, disassembled them and then rented and sold the physical discs.
District court grants preliminary injunction barring Redbox from reselling Disney movie download codes from “Combo Packs,” finding that Disney was likely to establish that Redbox’s actions constituted contributory copyright infringement under Disney’s revised terms of use.ĭisney distributes its films in multiple formats through a variety of channels, including DVD sales and on-demand and subscription streaming services.