Facts

Disney Enterprises, Inc., Lucasfilm Ltd. LLC, and MVL Film Finance LLC filed suit against Redbox Automated Retail, LLC in relation to Redbox's movie and video-game rental business that operates through self-service kiosks.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that Redbox illegally sold plaintiffs' digital movie codes to Redbox customers in disregard of clear prohibitions against this practice. Plaintiffs alleged they sold codes as part of combination packages that included a Blu-ray disc, a DVD, and a code, which can be redeemed for authorized digital access to plaintiffs' works. Plaintiffs claimed that Redbox bought and disassembled these combination packages, rented the discs through its kiosks, and sold the codes separately, knowing that Redbox's customers could not redeem the code without violating applicable license terms. Plaintiffs contended Redbox committed contributory copyright infringement, and won a preliminary injunction.

DEFENDANT'S CONTENTIONS: Redbox denied the allegations.

Result

The parties agreed to the entry of a stipulated consent judgment and permanent injunction under which Redbox was permanently enjoined from selling, offering, distributing, marketing, or promoting of movie codes.