Disney is suing Redbox to stop it from selling digital download codes

[veritas]

Originally Posted by PenguinInfinity

None of that is legally binding. When Walmart or Target buys their movies from Disney they sign a contract. It would be a violation of that contract to split up the movies and sell the DVDs, Blu-rays, and digital codes individually. When Redbox buys Disney movies from Walmart or Target no contract is signed.

Redbox has no agreement with Disney so Disney can't dictate what Redbox can do with it's own property. As I previously stated just because Disney states that codes can't be sold, doesn't mean it is illegal to do so.

the legally binding portion would come from shrink wrap licenses when you open the package you broke the shrink wrap and in so doing agreed to the licensing for the digital copy which said no sale transfer etc.

The way its written I always thought it would basically be legal to buy a package use the code then sell the blu and dvd under first sale (studios would still hate this but it would be almost impossible to really win a case like that in court given first sales precedence already set up for disc sales and the inability to transfer digital copies) because the license says you cant sell or transfer the digital copy but it says nothing about selling the blu ray or dvd (and precedence for thats already been established).

The legality of going the other way isn't so clear because you would be violating the written instructions on the code and violating the license. It then comes down to is what was written on the code sheets legally binding and if you broke the license are you committing a copyright violation.

Its also a bit confusing on who is more liable the guy selling codes or the guy buying codes. You are violating the license when you sell a digital copy and if the license isn't proper you could easily argue the buyer is committing copyright infringement (and the sellers enabling the buyer making the seller just as guilty).