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Fox, Warner seeking Redbox lawsuit dismissal

Written by Andre Yoskowitz (Google+) @ 03 Oct 2009 17:21 User comments (7)

Fox, Warner seeking Redbox lawsuit dismissal A few months ago, DVD rental kiosk company Redbox sued Warner Home Video, 20th Century Fox Home Entertainment and Universal Studios Home Entertainment over alleged violations of anti-trust laws over their decision to not allow the rental company to have their films until 30-45 days after release date.
As of this week however, both Fox and Warner are seeking to have the lawsuit dismissed.

Says Fox: "Redbox’s legal claims are fatally flawed. Fox’s filing today makes clear that, in the end, the case is all about Redbox’s refusal to make a business deal on general terms similar to those paid by others in the industry. Unable to get the terms it wanted at the bargaining table, Redbox instead decided to file this meritless lawsuit."

Says the Fox filing: “Antitrust law does not require a seller to provide its product through the distribution channel that the buyer demands, on the date that the buyer demands, or at the price that the buyer demands,.To the contrary, sellers have considerable freedom under the law to sell [or not sell] to whomever they want, how they want and when they want. To this end, a seller’s distribution policies do not violate [antitrust law] unless the plaintiff proves a contract, combination or conspiracy that injures competition. Redbox cannot meet any of these elements.”

In their filing, Warner noted: “By transforming a business negotiation relating to the terms with which it may deal with Warner into an antitrust suit, Redbox hopes to gain leverage at the bargaining table. Assisting one party over another in business negotiations is not the purpose of the antitrust laws. Nor are they meant to protect any particular merchant’s margins or input costs. Indeed, the antitrust laws are intended to protect competition and are indifferent to the fate of any particular merchant. It is therefore no surprise that Redbox’s allegations against Warner fall far short of what is required to state an actionable claim.”

Redbox has not responded to the filings yet.

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7 user comments

13.10.2009 18:34

when they all refuse to sell to you, or with threats of witholding product, stop others selling to you that! is a conspiracy

23.10.2009 21:18

agreed, these are 3 of the biggest entertainment companies out there, they are sending a message that says, if u don't play by our rules then we will put u under. They claim that redbox is hurting their dvd sales, like I said before make a decent movie that I want to watch more than once (the dark knight) and I will buy the dvd, Especially u fox. Until then quit blaming kiosks and piracy for low sales.

34.10.2009 11:43

these bs antics are amounst the reasons why so many people out there pirate movies.

44.10.2009 23:40

I can definitely see how redbox could be hurting dvd sales, and even hurting blockbuster. Hard to beat watching a new release dvd for only a buck. Looks like the studios leaped before they looked on this one! Smells like a counter suit in the making on conspiracy charges. I personally haven't bought a new release in years thanks to Redbox. I do however buy a title now and then off the $5.00 rack at walmart lol

55.10.2009 0:48

Originally posted by Rustbuket:
I personally haven't bought a new release in years thanks to Redbox.
Same here with netflix...but then again, there have only been a couple of good releases in the last few years that I might have bought anyway. About half of my netflix rentals are TV shows, as they are actualy more entertaining than most of the hollywood blockbusters.

Originally posted by Rustbuket:
Hard to beat watching a new release dvd for only a buck.

No it isn't...I'd rather have a decent selection of good movies than a redbox full of crap that isn't worth the price of a blank DVD. I would actualy pay money to avoid watching most of the movies that redbox caries.

65.10.2009 12:58

Originally posted by KillerBug:
Originally posted by Rustbuket:
I personally haven't bought a new release in years thanks to Redbox.
Same here with netflix...but then again, there have only been a couple of good releases in the last few years that I might have bought anyway. About half of my netflix rentals are TV shows, as they are actualy more entertaining than most of the hollywood blockbusters.

Originally posted by Rustbuket:
Hard to beat watching a new release dvd for only a buck.

No it isn't...I'd rather have a decent selection of good movies than a redbox full of crap that isn't worth the price of a blank DVD. I would actualy pay money to avoid watching most of the movies that redbox caries.

True, Redbox is full of crap movies right now, Can't argue with you on that. Theirs been a dead zone of great movies coming out on DVD this summer/fall. Blockbuster has the same crap movies on their new releases rack too. Except at BB you pay nearly 5 times the price to see it.

75.10.2009 18:48

Originally posted by Rustbuket:
I can definitely see how redbox could be hurting dvd sales
I don't believe it is, and if it was it would be minimal. My point was that even if redbox went under, people still wouldn't run out and buy the dvd for $15. They will just go to another rental store and pay $5. People who want to buy will and people who want to rent will. Its just a way for big studios to point the finger and make an excuse why their crap movies aren't selling.

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