In Redbox Automated Retail LLC v. Universal Studios Home Entertainment LLC et al., Delaware District Court Judge Robert B. Kugler allowed Redbox Automated Retail LLC to proceed with its antitrust allegations against Universal Studios Home Entertainment LLC, while dismissing Redbox’s misuse of copyright and interference with contract allegations. Judge Kugler found that Redbox had sufficiently alleged that Universal orchestrated a vertical boycott to keep distributors from selling Universal’s DVDs for use in the low-cost rental units, which severely limited Redbox’s movie selection, increased prices, and reduced consumer choice in the marketplace.
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