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LOS ANGELES (CNS) - Two Universal Studios entities have tentatively settled their lawsuit against video-on-demand streaming and video rental company Redbox Automated LLC, in which they alleged Redbox was behind in payments for licensing fees.
Universal City Studios Productions LLP and Universal Studios Home Entertainment LLC brought the breach-of-contract lawsuit in Los Angeles Superior Court, seeking $16.76 million. On Wednesday, Universal attorneys filed court papers with Judge Holly J. Fujie notifying her of a "conditional" settlement in the case with the expectation a request for dismissal will be filed by Oct. 7. No terms were divulged.
In their previous court papers, a Redbox attorney denied Universal's allegations and said they were barred wholly or in part by the statute of limitations.
According to the suit brought Feb. 2, Universal Studios entity NBCUniversal creates world-class content distributed across its portfolio of film, television and streaming, while Redbox is known for distributing DVDs in red kiosks in such retail outlets as grocery stores and pharmacies.
Redbox's content also is available through such avenues as one-time fees to download a file as well as through streaming.
In the first category of contracts, Universal licensed Redbox content for distribution via downloading and streaming and the second set of licensing contracts dealt with DVDs, the suit stated.
But in the summer of 2022, Redbox stopped paying money owed, resulting in the current $16.76 million balance as of January, according to the suit.
Universal has sent Redbox multiple letters notifying it of the breaches and demanding payment, but Redbox has not given any justification for its alleged failure to bring the payments up to date, the suit stated.