• by Wendy Davis  @wendyndavis, May 8, 2018

Disney isn't entitled to an injunction prohibiting Redbox from selling codes that enable consumers to download digital versions of movies like "Coco," "Thor: Ragnarok," and "Black Panther," the kiosk argues in new court papers.

The video rental company is asking U.S. District Court Judge Dean D. Pregerson in the Central District of California to reaffirm a ruling he issued earlier this year, when he rejected Disney's request to prohibit Redbox from selling the codes.

The battle over the download codes centers on Disney's movie combination packages, which include DVDs, Blu-Ray Discs and codes for digital downloads from RedeemDigitalMovie.com. Disney first alleged in a lawsuit filed last year that Redbox purchases the packages, rents or sells the discs at its kiosks, and then separately sells codes that enable consumers to download movies.

Disney initially claimed that Redbox's sales of the codes were improper for several reasons, including that the boxes stated: "Codes are not for sale or transfer." Disney argued that language created an enforceable contract between itself and purchasers.

In February, Pregerson rejected Disney's request for an injunction. He ruled that the phrase "Codes are not for sale or transfer" doesn't inform consumers they are agreeing to a binding contract by opening the packages.

Disney subsequently revised the language at the redemption site, which now informs consumers that they are only authorized to use a download code if they have purchased it from a combination pack. Last month, Disney again sought a court order against Redbox, based on the new language at the movie redemption site.

But Redbox counters in papers filed this week that Disney's terms still aren't enforceable.

"Plaintiffs are attempting to impose a new restriction on downloading the digital movie after Plaintiffs already sold it," Redbox argues. "Plaintiffs cannot impose that restriction any more than plaintiffs could demand consumers pay them an additional $20 to download the movie. By the time the consumer reaches the website, the movie has already been sold and the consumer’s rights to the digital movie have already vested."

Redbox also says its employees have recently been harassed when purchasing Disney movies. "Redbox’s field service members have been subjected to numerous incidents of harassment not previously experienced when trying to purchase Disney product at retail stores," the company alleges in its new court papers. "These incidents have worsened in recent months, and even included one Redbox employee being threatened with federal prison time by a merchandiser contracted by Plaintiffs to distribute their product."

Pregerson is expected to hold a hearing in the matter on June 4.