Redbox Files Lawsuit Against DVDXpress3 Aug, 2017 By: Erik Gruenwedel
Redbox has filed a lawsuit against kiosk operator DVDXpress, alleging the rental service is illegally using its federally registered red kiosks and false release window from studios, among other issues.
The suit, filed July 31 in U.S. District Court in Chicago, alleges DVDXpress redesigned its kiosks to unlawfully copy Redbox’s distinctive “red” color.
The suit claims the redesigned, red kiosks are confusingly similar to Redbox’s. It also claims DVDXpress advertises the availability of new-release movies 28 days before Redbox, which is inaccurate.
In addition to unspecified fiscal damages and a “disgorgement” of profits, Redbox is seeking a court injunction prohibiting DVDXpress from further infringing upon its trademark and trade dress.
It also asks that DVDXpress change the exterior of its kiosks; remove and destroy all false advertising; be prevented from engaging in additional false advertising; and required to issue corrective advertising.
Notably, DVDXpress, which was co-founded by Greg Meyer in 2001 and acquired by Redbox’s former corporate parent Coinstar in 2007, was reportedly spun off as a separate entity thereafter. A private equity group acquired Redbox in 2016.
Meyer, a former Blockbuster shareholder, in 2010 publicly challenged Blockbuster CEO Jim Keyes, claiming the executive was out of touch with the rapidly changing rental market, including competitors Netflix and Redbox.