Judge orders video site Zediva to shut down

{mosads}Unlike other video streaming sites, Zediva actually plays the movies on DVDs at its data center. Users select a movie, which is then put in a DVD player connected to the Internet.

But U.S. District Court Judge John F. Walter rejected Zediva’s argument and granted the MPAA’s motion for a preliminary injunction. He found the site violated the studios’ exclusive right to show the movies publicly.

He wrote its “service threatens the development of a successful and lawful video-on-demand market.”

The MPAA praised the ruling in a statement on Monday.

“Judge Walter’s decision is a great victory for the more than two million American men and women whose livelihoods depend on a thriving film and television industry,” said Dan Robbins, general counsel for the MPAA.

Robbins noted users can watch movies on sites such as iTunes, Hulu, NetFlix and Amazon, which have obtained licenses from the studios.

Zediva vowed to appeal the ruling.

“Today’s ruling represents a setback for the hundreds of thousands of consumers looking for an alternative to Hollywood-controlled online movie services,” the company said in a statement. “Zediva intends to appeal, and will keep fighting for consumers’ right to watch a DVD they’ve rented, whether that rental is at the corner store or by mail or over the Internet.”