You can't make copies for re-sale unless you obtain the rights. You can't make edits unless you obtain additional rights.
Films are cleaned up all the time for airplanes, television and foreign markets. The terms of the edits and distribution are clearly spelled out in the contracts.
You claimed they wanted the original to vanish. That was the falsehood. No, they only did not wish to be agents in passing on certain elements of it to their own clientele.
But the judge said that those edits cause "irreparable injury to the creative artistic expression in the copyrighted movies."