Who really “owns” a movie? Back in the days of physical media, the answer was clear. If you bought a VHS/DVD/Blu-ray, it was yours! But in the age of streaming, the rules are less clear. Amazon invites you to “buy” movies digitally on its website, but what the megacorp really sells are movie licenses, which can be revoked if Amazon loses the rights to the movie. This insidious little distinction has gotten Amazon into legal trouble before, and has once again, according to The Hollywood Reporter, which reports that a new class action lawsuit has been proposed against the company over the issue.
Per the outlet, the proposed suit is bolstered by new California law that says a transaction can’t be advertised as a “purchase” unless it offers unrestricted ownership of the product. That statute requires sellers to make it pretty clear to buyers that they’re getting a limited license. The class action complaint argues that Amazon “does not meet the standards set by the statute for a clear and conspicuous notice that the thing they are purchasing is a revocable license to access the digital good.” Wright Noel, a lawyer for consumers looking to sue the company, states in the filing that “[the] warning is buried at the very bottom of the screen, in font that is considerably smaller than the other text on the screen.”
Amazon has not yet commented on the proposed suit, which was filed in Washington federal court on Friday. However, when faced with a similar suit in 2020, the company countered that “These Terms of Use expressly state that purchasers obtain only a limited license to view video content and that purchased content may become unavailable due to provider license restriction or other reasons.” With this new Cali law in effect, we’ll see if the ol’ “Terms of Use” excuse flies in 2025.
