Court rules against Disney: It's perfectly legal to break up bundles (1 Viewer)

[Sam Posten]

=)
https://www.theverge.com/2018/2/21/...suit-star-wars-marvel-pixar-digital-downloads

 

[Josh Steinberg]

That's not exactly what happened in court. As part of their lawsuit, Disney asked the court to grant an injunction preventing Redbox from selling codes until the case could go to trial. The court today decided not to grant that. The lawsuit will still proceed and the outcome of that will determine the legality of the practice.

Which is not me offering an opinion one way or the other on what will happen, but just trying to say, it ain't over yet.

 

[DaveF]

This was not a non-opinionated lack of action. Also, this is about Redbox, not Netflix.

But in a Tuesday ruling, US District Judge Dean D. Pregerson denied the studio’s request for an injunction, arguing that the warning that “Codes are not for sale or transfer” on the DVD and Blu-ray packaging did not constitute a binding contract. Furthermore, he wrote that the licensing agreements that Disney utilizes on the Movies Anywhere and RedeemDigitalMovie websites improperly forced consumers to give up some of their basic ownership rights.

When consumers are redeeming a code, the sites essentially make them acknowledge that they currently own the physical copy that a given download code was bundled with. However, under copyright law, once customers buy a physical copy they are free to sell it, much as they would a used book. The Disney language legally prevents customers from redeeming their digital code — which they paid for as part of their initial purchase — if they have decided to exercise that right to resell the physical DVD or Blu-ray.

“This improper leveraging of Disney’s copyright in the digital content to restrict secondary transfers of physical copies directly implicates and conflicts with public policy enshrined in the Copyright Act, and constitutes copyright misuse,” Pregerson wrote.

 

[Josh Steinberg]

Also, this is about Redbox, not Netflix.

Typo fixed.

 

[DaveF]

Ok. Didn't know if you were referencing a different case

 

[Josh Steinberg]

This is what happens when I try to respond to articles on my cell phone late at night

 

[Wayne_j]

This could just lead to Disney stopping to provide digital codes to purchasers of the discs.

 

[Cranston37+]

Added to the code redeem page:

DIGITAL CODES ARE AUTHORIZED FOR REDEMPTION ONLY BY AN INDIVIDUAL WHO OBTAINS THE CODE AS PART OF A COMBINATION DISC + CODE PACKAGE (A PACKAGE THAT INCLUDES A DVD, BLU-RAY, AND/OR 4K/UHD DISC(S) AND A DIGITAL CODE), OR BY A FAMILY MEMBER OF THAT INDIVIDUAL. BY REDEEMING ONE OF THESE CODES, YOU ARE REPRESENTING THAT YOU OR A MEMBER OF YOUR FAMILY OBTAINED THE CODE AS PART OF A COMBINATION PACKAGE THAT INCLUDED THE DVD, BLU-RAY, AND/OR 4K/UHD DISC(S). YOUR TRUTHFUL REPRESENTATION IS A CONDITION OF REDEMPTION OF THE CODE AND OF YOUR OBTAINING A LICENSE TO ACCESS A DIGITAL COPY OF THE MOVIE.

 

[Sam Posten]

Just cause it's on the packaging that way does not commit you to a legal transaction making it so. Of course the schemes can kill your entire library if you skirt their rules, but that's not the same as a legally binding transaction. If they were to start killing libraries over people trading codes it would be a PR disaster for them.

 

[Jake Lipson]

Of course, Disney is trying again:

http://deadline.com/2018/04/disney-tries-again-stop-redboxs-sale-download-codes-1202361250/

 

[Cranston37+]

Of course, Disney is trying again:

http://deadline.com/2018/04/disney-tries-again-stop-redboxs-sale-download-codes-1202361250/

That’s a very misleading article - they aren’t “trying again” - they just filed an amended complaint to reflect changes they made to their terms of service. It’s the same lawsuit it’s always been.

 

[Jake Lipson]

If you notice, since this ruling was handed down, Disney has dropped the combo pack functionality from some of their big releases. Of course, they're still including digital codes (which I think have become so standardized in the industry that they wouldn't want to eliminate those.) But where titles used to be Blu-ray+DVD+digital, they're dropping the DVD. The Last Jedi is a prime example of this; The Force Awakens and Rogue One both had DVDs included, but The Last Jedi does not. Further, Black Panther was just announced, and it is also going to be a Blu-ray+digital only.

It seems like for animated titles, they're still throwing in the DVD, but not so much on live-action ones. I wonder if this is because you can't split the Blu+DVD up if you don't have both. Considering that Disney invented the combo pack with its Platinum Edition Blu-ray of Sleeping Beauty, this is an interesting change in their style.

 

[Sam Posten]

I'm ok with that. Heck just give us HD and digital good with me =)

 

[Todd Erwin]

Makes me wonder if Redbox is why you can't preorder Disney on Amazon....

And since I was able to place 25 copies of a pre-ordered non-Disney title in my cart (and quickly deleted them to avoid actually ordering them) I'm inclined to think that may have something to do with it.

 

[Mark-P]

Makes me wonder if Redbox is why you can't preorder Disney on Amazon....

And since I was able to place 25 copies of a pre-ordered non-Disney title in my cart (and quickly deleted them to avoid actually ordering them) I'm inclined to think that may have something to do with it.

Redbox wouldn’t be buying their stock from a retailer like Amazon, but would get it directly from a distributor at cost.

I actually think Disney would be better off offering a special code-less supply of discs at a discount to be distributed to rental outlets. But then I suppose those cheaper discs would end up getting distributed directly to retail outlets too.

 

[Todd Erwin]

Redbox wouldn’t be buying their stock from a retailer like Amazon, but would get it directly from a distributor at cost.

I actually think Disney would be better off offering a special code-less supply of discs at a discount to be distributed to rental outlets. But then I suppose those cheaper discs would end up getting distributed directly to retail outlets too.

Actually, Redbox does purchase their titles from retailers when they do not have a contract with a studio, and that is partially why they began selling digital codes to help recoup some of those costs since they do not have a contract with Disney.

This is also why most big-box retailers such as Wal-Mart, Best Buy, Target, etc. limit the number of copies an individual may purchase of a particular title, usually no more than three. As far as I can tell, Amazon does not have a limit.

 

[Carabimero]

The Force Awakens and Rogue One both had DVDs included, but The Last Jedi does not.

TLJ I bought from Target was a BD/DVD/Digital combo pack for $24.

Added to the code redeem page:

DIGITAL CODES ARE AUTHORIZED FOR REDEMPTION ONLY BY AN INDIVIDUAL WHO OBTAINS THE CODE AS PART OF A COMBINATION DISC + CODE PACKAGE (A PACKAGE THAT INCLUDES A DVD, BLU-RAY, AND/OR 4K/UHD DISC(S) AND A DIGITAL CODE), OR BY A FAMILY MEMBER OF THAT INDIVIDUAL. BY REDEEMING ONE OF THESE CODES, YOU ARE REPRESENTING THAT YOU OR A MEMBER OF YOUR FAMILY OBTAINED THE CODE AS PART OF A COMBINATION PACKAGE THAT INCLUDED THE DVD, BLU-RAY, AND/OR 4K/UHD DISC(S). YOUR TRUTHFUL REPRESENTATION IS A CONDITION OF REDEMPTION OF THE CODE AND OF YOUR OBTAINING A LICENSE TO ACCESS A DIGITAL COPY OF THE MOVIE.

This says it all. I just don't know how someone could sell codes, or facilitate the selling of codes, in good conscience.

 

[Blimpoy06]

This says it all. I just don't know how someone could sell codes, or facilitate the selling of codes, in good conscience.

I'll play Devil's advocate for a moment. How different is selling a digital download code over selling a used copy of the DVD or blu-ray? The initial sale was intended for one individual or household. Yet it is acceptable for huge retailers to have large portions of their physical media sales result from buying and selling pre owned media.

Studios have undertaken measures to implement regional coding and blocking. Region locked players are constantly being modified to circumvent the studios who have limited distribution rights for TV shows and movies. On some level, most members of the forum have undertaken practices that the studios and labels wish we didn't in pursuit of our hobby. Everyone has to come up with their own level of what should be done in good conscience.

 

[TravisR]

TLJ I bought from Target was a BD/DVD/Digital combo pack for $24.

Oddly enough, I think it was just the Target exclusive one that had a DVD. Maybe Best Buy's steelbook had it too but I'm not sure. The standard Blu-ray didn't have the DVD.

 

[Carabimero]

I'll play Devil's advocate for a moment. How different is selling a digital download code over selling a used copy of the DVD or blu-ray? The initial sale was intended for one individual or household. Yet it is acceptable for huge retailers to have large portions of their physical media sales result from buying and selling pre owned media.

That's easy. The studio is selling one copy in different forms for that particular owner and extended family, etc. The movie was sold as one item. If you sell the code, fine. Sell your discs with it. Who thinks you should be able to sell your movie and still be able to watch? There's no version of that which is ethical to me. That's not right on the face of it.