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Fox Answers Redbox, Repeats Call for Dismissal

By : Chris Tribbey | Posted: 09 Feb 2010

In its latest court filings in its litigation with Redbox, 20th Century Fox Home Entertainment asserts that the kiosk operator has yet to prove the studio violated antitrust laws when it called for distributors to keep new release DVDs away from Redbox for 28 days after street date.

The studio also says Redbox fails to prove that Fox and retailers agreed to limit new-release DVD sales, or that the studio’s actions have or will result in unfair competition. The studio asked Feb. 8 for oral arguments regarding its motion to dismiss the case.

“Redbox’s pleadings show that Fox and Redbox negotiated over Redbox’s direct procurement of newly released Fox DVDs but did not agree on price,” a Feb. 4 filing reads. “Without any agreement, Fox had every right to change its distribution policy to stop all sales of Fox DVDs to Redbox.”

Fox also argues that its motion to dismiss the case differs from one denied in a similar case between Redbox and Universal Studios Home Entertainment. Fox points to statements made by Redbox since summer 2009 when Judge Robert Kugler allowed the Universal case to move forward.

“A company experiencing explosive growth in the face of alleged ‘anticompetitive’ conduct cannot plausibly allege injury,” Fox argues. “A company alleging a concerted ‘boycott’ cannot plausibly allege injury where it claims elsewhere that the boycott is ineffective. And a company that admits it competes with a host of other forms of entertainment cannot plausibly allege a market limited to individual new-release DVDs.”

Related Stories :

Redbox Accuses Fox, Warner of Retailer Interference
Warner, Fox Seek Dismissals in Redbox Suits


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