Zediva thought it had things all figured out. Allow users to rent a DVD player in a data center someplace with a hot new release movie in the slot, then stream them the output from the DVD player. Zediva claimed that was no different than the consumer renting the disc themselves. The courts didn’t agree and have now upheld a preliminary injunction and shut Zediva down for good. The company has also been ordered to pay the MPAA $1.8 million.
Well, it was fun while it lasted. Zediva, a video rental service that tried an end run around copyright law, has been ordered shut down by a federal judge. US District Judge John Walter sided with the MPAA and issued a preliminary injunction that will force Zediva to close down in one week.