Los Angeles Judge Dean Pregerson ruled that a combo pack’s two rental components — a Blu-ray disc and a DVD — are protected by the first sale doctrine, which allows a purchaser of a copyrighted work to resell it, just as a buyer of a book can resell it to a second-hand bookstore, including "Beauty and the Beast" and "Guardians of the Galaxy Vol. 2.".
The program captures the motion of the face to create images used in motion pictures. It captures an actor’s performance frame-by-frame to create “original contour program output files based on the performance, frame-by-frame”.
The Mova Contour methods and systems are protected by US patent numbers 7,605,861, 8,659,668, 7,548,272, 7,567,293, and 8,207,963.
However, Disney sued Oakbrook Terrace, Ill.-based Redbox in November 2017, accusing the company of facilitating copyright infringement and breach of contract.
The claims of copyright infringement were dismissed without prejudice.
The court ruled that any direct infringement claims are dismissed without prejudice, although it found that Rearden sufficiently alleged active inducement, and therefore the motion to dismiss the indirect inducement claims was denied.
Redbox does not have a licensing agreement with Disney, which has a long history of feuding with the company over its cheap discs rented from thousands of kiosks at drugstores and supermarkets.
In regards to the claim of copyright infringement, Disney argued that Rearden’s copyright claims fail because Rearden “cannot show that the copyright in the software program extends to the output files; and even if it could, Rearden cannot show that the CG [Computer Graphics] characters or the movies are derivative works of the film”.