The nation’s biggest movie studios have won a copyright infringement lawsuit against video-streaming startup Zediva Inc.
Zediva’s founders thought they had discovered a legal loophole for online viewing of movies by having customers rent DVDs physically located in the Silicon Valley. That way, Zediva wouldn’t have to wait for licensing deals with studios, which often withhold newer movies.
U.S. District Judge John Walter in Los Angeles disagreed.
Zediva, a startup that specializes in streaming video or renting DVDs, depending on your perspective, is facing a very serious -- and possibly game-ending -- lawsuit brought by the MPAA.
Will be interesting to see how this ends. Sometimes taking a stand on loopholes like this is good, but most often not so good.
Didn't we say this was going to happen, just a few weeks ago on the other article about this?
Zediva, a streaming movie service you’ve likely never heard of, is a most clever and useful middle finger to Hollywood — even if the site is careful to say it’s not about sticking it to the studios.
I have a strong feeling that their Loophole won't last for very long, and it's just a matter of time before the studios find a way to clamp down on it.
It's an interesting idea though, and a clever work around, but there's no way the studios will be inclined to let it continue.
Well I'm not so sure about that. It's no different than renting the movie out one at a time. Any Tom Dick and Jane could just buy a boatload of movies and start renting them out and this is exactly what they're doing here only the people aren't going to a physical storefront - they're just using a a web interface to pick it up. Technically, this limits copy infringement by keeping the disc out of the hands of the renters too.
I know there are ways around it still but realistically the average user probably can't even be bothered to look into the ways to copy the file anyhow.
I see what they're doing, but I still don't see it lasting for too long. I don't know, maybe I'm just becoming a bitter old movie buff.
Actually Blockbuster already got sued for this, so im suprised it came back up. Blockbuster tried to claim the same thing for rights, and this is also why other companies went bankrupt.
They then had to pay fee's and also have to have issued rental copies too. So the only thing on the disc is the movie, no special features or anything. New movies also have company branding on them. Go rent a redbox or blockbuster movie and you will see what im talking about.
Interesting, I didn't know about that Soldier. Studios don't like people messing around with their stuff, especially when it comes to loopholes. They'll find a way to plug it up soon enough.
Honestly, if they're actually doing this the way they say they're doing it and really are buying the DVDs (multiple copies) and running the program like that...I might not be surprised if the studios kinda get behind it, or at least don't mind.
If you think about it, if Zediva really is buying DVDs (multiple copies of the same movies) and just renting them out virtually, then the studios are getting their money from all those extra copies being bought up by this company/site. So it's money in their pocket, which I'm sure they're happy about.
The only thing I might see happening is the studios trying to get a piece of the pie. Maybe if Zediva gets big enough studios might start doing like they did with Blockbuster or whatnot, saying "Hey, give us a percentage and in turn we'll cut you deals on DVDs or maybe even give you timed-exclusive rights to a movie or two".
But really, this is no different than Blockbuster. I don't see the studios having a problem with it (and if they do, there's nothing they can do about it). I wouldn't even consider this a "workaround". More like a new step in the evolution of movie rentals. There's absolutely no difference in this and Blockbuster or Netflix. Except for the way that the company delivers the DVD/Movie to the customer. This article was just written in a way to instigate things and make it out like this is some type of "I'm breaking the law but you can't do anything about it" type of middle finger to Hollywood studios.
All of what I have said, of course, is based on the fact that this is legitimately how they're running the operation. And they're not actually copying and distributing that way. Studios might apply some pressure to ensure Zediva is doing it how they say they're doing it, but beyond that...no big deal.
In the long run I can see this really catching on. Look how effective those Redboxes and web streaming sites were, they really put a dent on the brick and mortar rental stores, so much that blockbuster is closing stores left and right. Tthis site offers new movies as soon as they are released, where as Netflix and other ondemand services have to wait about a month before the can offer them.
Sure, I could see it catching on...if done right. They'd need to put some serious marketing behind it. Otherwise, they'll just get lost in the sea. The rental industry has some stiff competition right now with Blockbuster, Netflix, Redbox, even Amazon getting into it. So it's not like people will be actively searching for some type of "savior" to help them with their movie rental woes. Zediva would really have to do some serious marketing and get its name out there if it wants to contend with those others (or even think about contending with them).
Its a creative idea thats going to get away with things until it catches on, if it catches on. Once the company starts making a noticable amount of money, the studios will not be happy when they are not getting their share of the money. Then they will "cut a deal" with the company, and prices will go up. And they will be stuck fighting with everyone else, and probably fall out of the race.
Redbox is at war with the studios right now, you honestly think this wont go to war too? The studios are greedy, especially ones like FOX, and there are no changing that. Then Redbox and Blockbuster are going to through a fit since they all have to jump through loops just to provide movies within a month of release.
And Netflix? They see this actually working, and guess who starts doing it. Netflix gets kicked in the arse when they to dont pay out of it for everything they offer.
I knew it! I remember when they first started and the news of this company came on here to Filmwatch. Most of us were pretty divided about it's legality, but just about all of us agreed that they wouldn't be doing it for very long.
The thing that sucks most for them, is that they spent 2 years developing the tech to make it possible...and now they can't use it.
I don't feel too sorry for them though, as I always felt what they were doing wasn't right.
can't say i'm surprised.
technically they are broadcasting the movies so they would be violating the copyright.
I had never even heard of this company before. I really don't see how they thought that would be considered legal if they're still streaming.
I wonder why Netflix pushes for just streaming so much now if they have to pay the companies rights for that and not the DVDs. It seems like companies would be more for streaming their stuff in that case. Especially if people are just going to rent the dvd instead and they still won't get any profit that way.
you can't fight the movie studios :)
If the creators are not getting paid, then it's wrong. Common sense.