DVD rental kiosk company Redbox has been given the all-clear to pursue its antitrust case against Universal Studios Home Entertainment (USHE).
US District Court Robert Kugler judge threw out a motion by the studio to dismiss Redbox’s claim late on Monday , however this wasn’t a comprehensive victory for Redbox as the judge rejected two of its further claims.
Redbox’s antitrust case takes issue with a move by USHE last year to block DVD sales to Redbox for the first 45 days of the DVD release date, thus enabling the studio to preserve the bulk of its full-price rental revenue through partners like Blockbusters.
Redbox, which charges $1 a night for DVD rentals, filed a similar suit against Fox last week. The kiosk company is yet to take action against Warner Home Video after that studio said last week it would sell directly to kiosk and mail-order subscription vendors but would offer its titles 28 days after their street release.
Lionsgate recently signed a five-year deal whereby Redbox can carry its titles on their initial release date.
In a flamboyant ruling that punned frequently on Hollywood titles like The Fast And The Furious, Do The Right Thing and Duplicity, Judge Kugler dismissed Redbox’s claims relating to copyright breach and tortious interference.