Judge tells Zediva to stop web streaming of movies

August 2, 2011 - 10:28 AM

LOS ANGELES (AP) — A federal judge in Los Angeles issued a preliminary injunction favoring the Motion Picture Association of America in its copyright infringement lawsuit against video-streaming startup Zediva.

The MPAA said in a statement that Judge John Walter issued the order Monday against Zediva, whose founders believed they discovered a legal loophole to allow early instant viewing online by having customers rent DVDs physically located in Silicon Valley.

MPAA Senior Vice President Dan Robbins calls the decision a great victory for workers in the film and television industry.

Zediva said in a statement it intends to appeal, calling the ruling a setback for consumers looking for an alternative to Hollywood-controlled video services.

The MPAA, representing Hollywood studios, in April sued Zediva's parent company WTV Systems and founder and CEO Venkatesh Srinivasan.