Redbox has agreed to resolve a battle with Disney by refraining from selling codes that enable consumers to download Disney's digital movies, the companies disclosed in court papers filed Thursday.
If the agreement is approved by U.S. District Court Judge Dean Pregerson in the Central District of California, the deal will settle a copyright infringement lawsuit centered on Disney's movie combination packages, which include a DVD, Blu-Ray Disc and code for a digital download from RedeemDigitalMovie.com.
Disney alleged in a 2017 complaint that Redbox purchases the packages, rents or sells the discs at its kiosks, and then separately sells codes that allow consumers to download movies like "Black Panther" and "Guardians of the Galaxy."
The company sought an injunction that would have prohibited Redbox from continuing to offer the codes.
Disney initially argued it was entitled to restrain Redbox from selling the codes because the packaging on the combination-package boxes stated: "Codes are not for sale or transfer."
In February of 2018 Pregerson rejected Disney's argument, ruling that the phrase "Codes are not for sale or transfer" doesn't inform purchasers they are agreeing to a binding contract.
Disney then revised the language on the packaging and its online redemption site to read that people are only allowed to use a download code if they purchased the code from a combination package.
After Disney reworked its packaging and redemption site language, Pregerson reversed course. He said in a ruling issued in September of 2028 that the new language entitled Disney to a preliminary injunction prohibiting Redbox from selling the download codes.
If he approves the settlement, that injunction will become permanent.