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Zediva ordered to permanently shut down operations, pay $1.8 million to MPAA

Amar Toor, @amartoo
11.01.11
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The last time we checked in with Zediva, the DVD streaming service was reeling from a court-ordered preliminary injunction that effectively brought its operations to a halt. At the time, the California-based company was still pinning its hopes on the promise of a forthcoming appeal, but those hopes were summarily quashed on Friday, when US District Judge John Walter rendered the injunction permanent. Zediva had previously exposed an apparent loophole in US copyright law, by allowing users to stream movies from physical DVDs located in Silicon Valley. This strategy allowed the firm to offer newly released movies well before other on-demand services, but according to Judge Walter, it was also illegal. Zediva will now have to cease all operations and pay $1.8 million in damages to the MPAA. The defendant has yet to comment on the decision, but MPAA Associate General Counsel Dan Robbins seemed understandably delighted: "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."

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