Oakbrook Terrace, Ill. - Redbox, the operator of a network of in-store DVD rental kiosks, announced on Tuesday that it has sued Universal Studios Home Entertainment and three of its affiliates in federal court, alleging violation of antitrust laws and misuse of copyrights.

Redbox states that it "believes that new distribution terms proposed by USHE would prohibit redbox from renting Universal Studios DVDs for 45 days after their public release, would limit how many Universal Studios DVDs each redbox kiosk could carry, and would require redbox to destroy, rather than sell at a discount, previously-viewed DVDs from its kiosks."

In its lawsuit, Redbox also alleges that USHE has threatened to stop providing its DVD titles to Redbox's two distributors -- Video Product Distributors and Ingram Entertainment -- should the company refuse to accept USHE's new terms.

Redbox, whose automated in-store kiosks rent DVDs for $1 per night, said that in the meantime it plans to continue carrying Universal Studios' DVD titles on their release date.

Related Links:
http://www.businesswire.com/news/home/20081013006153/en

http://snipurl.com/4d078 (PACER)

http://snipurl.com/4d0eq (Home Media Magazine)

http://www.redbox.com