Disney sues Redbox over “digital codes” offering

Redbox just ran into a big problem. In October, the company – best known for its DVD kiosks – launched its “digital codes” offering. The service enables consumers to purchase codes from the company’s kiosks; those codes offer information on how to stream Disney movies. But Disney wasn’t too pleased about the program, and now the entertainment giant is suing Redbox. The company argues that the sales violate its copyrights. And the Mouse House means business: The lawsuit, filed in a federal district court in California, seeks an injunction against Redbox’s sales of its movies. Disney is also asking for damages of up to $150,000 – for each title sold through the digital codes offering. In addition, Disney wants Redbox to hand over all the revenue it took in from the sales. Redbox doesn’t have a direct distribution deal with Disney, and hasn’t since 2012.

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