A federal judge in Los Angeles issued a preliminary injunction favoring the Motion Picture Association of America in its copyright infringement lawsuit against video-streaming startup Zediva.
The MPAA said in a statement that Judge John Walter issued the order Monday against Zediva, whose founders believed they discovered a legal loophole to allow early instant viewing online by having customers rent DVDs physically located in Silicon Valley.
MPAA Senior Vice President Dan Robbins calls the decision a great victory for workers in the film and television industry.
Zediva said in a statement it intends to appeal, calling the ruling a setback for consumers looking for an alternative to Hollywood-controlled video services.
The MPAA, representing Hollywood studios, in April sued Zediva's parent company WTV Systems and founder and CEO Venkatesh Srinivasan.