Zediva Laid Low by Permanent Injunction


Zediva, the company that wanted to break into the DVD rental business by streaming DVDs being played in remote DVD players rather than renting physical discs has been shut down permanently. We were pretty pessimistic about Zediva’s chances when the preliminary injunction was issued, but this injunction makes things final. Of course, the MPAA wouldn’t be satisfied with simply shutting down a business like Zediva. They would want to make sure to squeeze some blood from the stone.

U.S. District Judge John Walter issued a permanent injunction against Zediva’s operators that will force them to shut down the service for good.

According to a statement from the Motion Picture Association of America, the trade group representing the six major film studios, Zediva’s operators have also agreed to a payment of $1.8 million to the studios.