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Among other things, the terms of use stated that, by redeeming a code, a user “represents that is the owner of the physical product that accompanied the digital code at the time of purchase.” The terms of use provide, inter alia, that a customer can enter authorized codes “from a Digital Copy enabled … physical product that is owned by ,” and that the sale, distribution, purchase or transfer of digital codes is “strictly prohibited.”ĭefendant Redbox Automated Retail LLC is a company that rents and sells movies to consumers via tens of thousands of automated kiosks that dispense DVDs and Blu-ray discs.
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The exteriors of the Combo Pack boxes contain text stating, “Codes are not for sale or transfer.” Very fine print at the bottom of the boxes further indicates that, with respect to “Digital HD,” “Terms and Conditions apply.” The and websites set forth additional terms and conditions of use. 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.
Disney digital copy code not working license#
District court denies Disney’s motion for preliminary injunction seeking to enjoin Redbox from reselling download codes that allow end users to download or stream Disney films, finding that Disney was not likely to establish that Redbox’s actions constituted breach of contract, and that restrictive terms of Disney’s digital download services’ license agreements likely constitute copyright misuse.ĭisney, which owns the copyrights in numerous well-known movies, distributes its films in multiple formats through a variety of channels, including DVD and Blu-ray disc sales, and on-demand and subscription streaming services.