Redbox says Universal Studios unfairly limits DVD-rental options
October 13, 2008
Home Media:Redbox has filed a federal suit against Universal Studios Home Entertainment that alleges Universal's new revenue-sharing terms for DVD-vending operators violates antitrust laws and misuses copyrights. The suit claims Universal's new terms would eliminate low-cost rental alternatives for consumers by prohibiting redbox from renting or selling Universal DVDs until 45 days after they hit the street, limiting the number of Universal DVDs the kiosk operator can stock, and requiring redbox to destroy Universal DVDs after they leave the kiosks, instead of being sold as used to consumers. Redbox is seeking an injunction that would prohibit Universal from limiting the number of its DVDs in redbox kiosks, fiscal damages, and declarations of copyright misuse.