MPAA Sues Movie Streaming Site That Uses Connected DVD Players

This article on Techdirt covers a interesting fair use issue.  The company, Zediva, purchases DVD’s and then connects DVD players to the internet and allows users to “rent” the player, and watch the movie via streaming over the internet.  They have now been sued by by the MPAA (Movie Picture Association of America) for providing a video on demand service without proper licences.

A little more from Techdirt below:

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When Zediva launched, we already knew it was going to face a legal fight from the MPAA and the movie studios. The company lets people stream movies they want to see, but tries to get around the legal licensing issues by only streaming directly from internet connected DVD players, playing legitimately acquired DVDs. Their argument is that it’s really no different than renting a movie and bringing it to your own DVD player. And, perhaps, the Cablevision ruling in the US on remote DVRs gives them some support for their position. But, there was no way the industry was going to just let this go by without any sort of fight. And, so, the MPAA has now sued the company claiming that it’s a “sham,” and that Zediva is running an illegal video-on-demand service without the proper licenses. In some ways, this case could also impact the attempts bycloud music players to stream legitimate content without a license as well.

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