Zediva's loophole-exploiting DVD rental service has just been dealt a lethal blow by Judge John F. Walter. The recent court-ordered preliminary injunction effectively halts the company's ability to rent its library to users across the internet's great streaming divide. Citing irreparable damages to both the nascent video on demand market and Hollywood's bottom line, the federal judge found Zediva's business in violation of studios' exclusive right to public performance of copyrighted works. The bizarro Netflix alternative had been operating without the normal licensing restrictions required by the industry and despite its claims of imminent ruination, will have to close shop. For its part, the unique startup has vowed to appeal the ruling, but if that doesn't work, at least its creators can watch No Strings Attached ad nauseum.

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Zediva's DVD rental service ordered to close shop, Hollywood pops celebratory bubbly