News

Zediva taking a court-mandated intermission

October 31, 2011

Zediva, an Internet movie-rental company, must pay the Motion Picture Association of America $1.8 million for violating copyright laws. California's U.S. District Judge John Walter handed down the decision Friday.

Since its official launch in March, Zediva had been circumventing the28-day delay put on new releases to keep companies, including redbox and Netflix, from dispensing the newest films to customers.

Zediva officials claimed they were not violating any laws because they buy physical copies of the movies, tying the Internet streaming of each movie to a physical DVD and player kept at its data center in Silicon Valley. Zediva charged $1 to $2 for each movie.

Judge Walter disagreed, rendering an August court-ordered injunction halting Zediva operations, permanent.

Although Zediva did not respond to KioskMarketplace.com's request for comment, MPAA Associate General Counsel Dan Robbins said in a statement he was happy with the decision.

"This result sends a strong message to those who would exploit the studios' works in violation of copyright law, on the Internet or elsewhere, and it is an important victory for the more than 2 million American men and women whose livelihoods depend on a thriving film and television industry."

Read more about DVD kiosks.