Zediva is no more.
U.S. District Judge John Walter effectively shut down the streaming service for copyright violations on Friday, issuing a permanent injunction against the company.
Zediva, which hoped to ride a licensing loophole to big profits, has agreed to pay $1.8 million in damages for failing to negotiate with studios for rights to their movies.
Zediva undercut competitors like iTunes and Netflix by ignoring the 28-day delays imposed by studios for new releases and offering films for $1.99 a rental or for a package of 10 films for $10. New releases typically rent for $5.
In April, the studios sued the operators of Zediva for violating the studios’ for violating the Copyright Act.
On Aug. 1, 2011, Judge Walter granted the studios’ motion for a preliminary injunction. Friday's decision rubber stamps the corporate death sentence.
The Motion Picture Assn. of America, which has represented the studios throughout the suit, hailed the injunction.
“We are pleased that this case ended with a court order permanently ending Zediva’s infringement,” MPAA Associate General Counsel Dan Robbins said in a statement. “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 two million American men and women whose livelihoods depend on a thriving film and television industry.”