A California court has handed beleaguered movie rental company Zediva a permanent injunction, effectively closing the door on a comeback. The controversial site was live for mere weeks before the MPAA took action, asserting Zediva's online DVD streaming was an obvious play at circumventing U.S. copyright law.
"We are pleased that this case ended with a court order permanently ending Zediva's infringement," said Dan Robbins, MPAA senior vice president and associate general counsel. "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 two million American men and women whose livelihoods depend on a thriving film and television industry."
Robbins added that there are plenty of lawful ways for consumers to watch movies and TV shows online.
Zediva previously shut down its website in August following a preliminary injunction. As part of the new permanent injunction (.pdf), the company will also pay $1.8 million to affected movie studios.
Analysts had hinted that Zediva was poking the bear when it launched a beta version in March. Copyright lawyer Bob Garrett pointedly called the service "cute but illegal." The company believed otherwise, comparing itself to Blockbuster.
"Zediva buys real authorized DVDs," said Venky Srinivasan, founder. "We are a DVD rental service. The notion of DVD rentals is well established. Just like any other DVD rental service, only one user can rent a DVD at a time."
Zediva - or what's left of it - has not issued an official statement on the ruling. (via The Hollywood Reporter)
