Disney has just filed a lawsuit against Redbox, who launched a service in October that offers customers “digital codes” to purchase Disney movies. The Redbox kiosks print the code with information on how to download the movies from “Disney’s services or affiliated sites.”

Redbox buys Disney DVDs and Blu-rays on the open market, which include the “digital codes.” Redbox in turn separates the DVDs and Blu-Rays, which they rent, and the “digital codes,” which they sell separately. Disney does state on the DVD and Blu-ray packages that “Codes are not for sale or transfer.”

Disney filed a lawsuit in a federal district court in Los Angeles. Disney claims that every title sold by Redbox cost in up to $150,000 in damages. In addition, Disney also claims that they deserve all the money made from the sale of these “digital codes.”

Source: Variety