Redbox Settles With Disney, Agrees Not to Sell Digital Codes

Disney and Redbox have settled their two-year-old lawsuit, with the kiosk company agreeing to never sell digital codes.

The codes offering access to a digital movie copy are contained in disc combo packs that Redbox purchases so it can rent out the discs from its kiosks. Unlike other studios, Disney does not have a rental agreement with Redbox. The kiosk company, which purchases Disney titles at retail, had been splitting up the content of the combo packs, renting the discs and selling the codes.

U.S. District Court judge Dean D. Pregerson Nov. 14 filed a proposed stipulated consent judgment and permanent injunction based on a Nov. 12 settlement between the parties.

Redbox is “permanently restrained and enjoined from selling, offering, distributing, marketing or promoting (including entering into any contract providing for the sale, offer, distribution, marketing, or promotion) of codes,” read the filing.

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