Think back a few months to a fight that took place between Redbox and the major Hollywood studios. Hollywood execs were all hot and bothered about how Redbox kiosk’s cheap $1 movie rentals were cannibalizing new DVD and Blu-ray sales, and decided to order their wholesale distributors not to sell to Redbox for a month or more after the initial release.
Redbox launched some legal action in response and decided to buy directly from retailers to stock kiosks as a workaround. However, that came crashing down for Redbox when Wal-Mart and other retailers imposed limits on the number of units of the same film a single customer can buy from them. Long story short, Redbox ended signing deals with Fox, Universal and Warner Bros. that required a 28-day window before Redbox kiosks could offer new titles for rental.
Paramount however decided to actually test whether or not the availability of new titles from rent from Redbox kiosks affects the sales of new DVD or Blu-ray releases. It signed a deal with Redbox in August 2009 which would allow it to stock new releases on the same day as the title comes out on Blu-ray and DVD. Redbox agreed at the time to share rental data with Paramount so that it could evaluate the potential benefits of a longer-term contract.
Following the 10-month analysis of DVD sell-through and renal performance, Paramount and Redbox announced on Tuesday that Paramount had extended its revenue sharing license agreement, providing Redbox access to Paramount DVD and Blu-ray titles to rent on the same day they are released in the sell-through market.
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Result for: hollywood studios
RealNetworks has announced that they have settled their outstanding lawsuits with the major Hollywood studios over their Real DVD ripping software, effectively killing the product off after making just 2700 sales.
Additionally, Real will pay $4.5 million to pay off the legal costs of the litigation.
“We are pleased to put this litigation behind us,” adds Bob Kimball, president and acting CEO for Real. “This is another step toward fulfilling our commitment to simplify our company and focus on our core businesses. Until this dispute, Real had always enjoyed a productive working relationship with Hollywood. With this litigation resolved, I hope that in the future we can find mutually beneficial ways to use Real technology to bring Hollywood’s great work to consumers.”
The settlement also terms a permanent injunction that will block RealDVD and similar technologies forever from sale in the US or abroad.
The $30 USD software application allowed users to make a copy of their DVDs and it play it back on their PCs, allowing for, what Real thought, were legal backups. Clearly, Hollywood did not agree, despite the fact that Real’s backups also included DRM to stop sharing of the backups.
Result for: hollywood studios
The Hollywood studios have lost a landmark case against the ISP iiNet today after an eight-week trial.
The case would have impacted how Australian ISPs would have had to react to potential pirates, but the judge ruled that iiNet was not responsible for the downloading habits of any of its subscribers.
Justice Cowdroy said all the evidence showed that iiNet was simply providing Internet service for its customers, not facilitating piracy. He did conclude, however, that iiNet had knowledge of infringements occurring and did not anything to stop them, which was fine as the ISP is simply “a legitimate communication facility,” not “intended nor designed to infringe copyright.”
“iiNet is not responsible if an iiNet user uses that system to bring about copyright infringement … the law recognises no positive obligation on any person to protect the copyright of another,” Justice Cowdroy added.
