Warner Home Video is pursuing a lawsuit against disc destruction firm IWMB, claiming that rather than destroying the discs, the firm has been turning around and selling them to retailers at a lower cost.
For those not familiar with the retail process, rather than keeping old or unpopular products on the shelf for an extended period of time in hopes of getting rid of them, companies have them destroyed, to avoid used media competition, and to write them off as a loss.
Video Business reports that IWMB, a subcontractor of the firm Cinram Distribution who Warner sends their destroyable discs to, have allegedly sold one million discs to retailers, the majority of which have already been sold to consumers.
Warners lawsuit alleges “The illegal sales of Warner product have caused WHV substantial injury and unless enjoined, threaten irreparable harm to WHV. Defendants’ sale of the Warner product at lower-than-market prices not only deprived WHV of the benefit of possession of the product, but has also undermined and diluted the value of the home video titles”