Movie studios sue Zediva over movie streaming

[April 06, 2011]  NEW YORK (AP) -- The Motion Picture Association of America has sued Zediva, the gutsy startup that made the latest hit movies available for instant viewing online long before they hit Netflix or Redbox.

Zediva thought it came up with a loophole to circumvent the usual, sometimes lengthy waiting period that movie studios impose on companies that stream movies over the Internet. It lets customers rent a DVD and a player that are physically located in the Silicon Valley.

But the MPAA says what Zediva is doing is illegal. The studios, including Warner Bros., Columbia Pictures, Disney Enterprises and others, filed a federal lawsuit in Los Angeles against Zediva's parent company, WTV Systems, and founder and CEO Venkatesh Srinivasan.

A Zediva representative did not immediately return messages for comment.

[Associated Press]

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