Judge Orders Zediva's DVD Rental Service to Shut Down

Zediva's has been ordered to cease operation by Judge John F. Walter. Citing irreparable damages to the video-on-demand market and movie studios, the federal judge found Zediva's business in violation of studios' exclusive right to public performance of copyrighted works. Zediva had used a loophole to allow users to rent DVDs remotely over the Internet before they became available through Netflix NFLX and Redbox CSTR.