Disney loses bid to stop Redbox from selling its digital download codes

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Last December Disney filed a lawsuit against Redbox in an effort to get the company to stop selling digital download codes for Disney films. But as The Hollywood Reporter notes, a California federal judge has rejected the studio’s request for an injunction that would have halted the practice. Instead, the judge called into question Disney’s stringent policies about the codes, accusing the studio of “copyright misuse.”

The case results from Redbox’s lack of an existing business arrangement with Disney. The rental service has distribution deals in place with major studios like Warner Bros., which allow Redbox to purchase physical DVDs and Blu-rays of popular movies that it then offers for rental at its standalone kiosks. Disney has struck…

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