Chalk up another win for the MPAA as a federal judge has issued an injunction for Zediva. The game-changing service was still in invite-only mode when it was ordered to shut down. Zediva offered streaming movies to its customers by renting them a DVD player and a DVD, and then streaming the video online to the paying customer. This complicated setup was in-place to bypass licensing requirements for streaming the videos. It tried to take the approach of renting DVDs like a Blockbuster instead of paying for the streaming licensing like Netflix. Standing by their interpretation, the judge ruled that Zediva was infringing on the copyright owners’ rights.
A federal court judge issued a preliminary injunction Monday that orders the online DVD-streaming streaming service Zediva to shut down, finding that the service is infringing on Hollywood’s rights and that its continuing service threatens the studios’ attempt to build a video-on-demand market.
The parties have to agree on a shutdown plan by August 10, and the suit will continue — though the ruling indicates that Walter is likely to eventually rule for the studios, which are seeking damages both from Zediva and its founder Venkatesh Srinivasan.
You can read the full write-up on the case, including Zediva’s next options, from Wired Magazine.