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Zediva — a new online movie service that gets around the need for studio licensing deals by renting users a physical disk and DVD player from afar — has proven to be a hit with consumers, who have stormed the startup since its launch last week.

While Zediva’s popularity with public is clear, the legality of the service — and the movie industry’s opinion of the company — couldn’t be murkier.

[size=24pt]Zediva buys physical copies of new-release movies, and plays them one at a time on physical DVD players located at the company’s servers; customers rent a player for $2, and the user’s computer acts as the remote. Only one customer can watch a given DVD at a time, which the company says gives them legal cover since it makes them not really different from a traditional video-rental store or Netflix’s DVD-by-mail service.[/size]

But James Grimmelmann, an associate law professor at New York Law School who specializes in online legal issues, says the company is all but doomed, anyway.

“Zediva’s supposed ‘loophole’ in copyright law doesn’t exist,” Grimmelmann wrote in a blog post after Zediva launched. “Zediva is about to get pounded by the movie studios, and hard.”

Copyright law gives movie studies the sole ability to license “public performances” of movies — such as a movie theater screening a film. Grimmelmann says he assumes that Zediva thinks streaming a DVD player to a customer is a private performance, and thus not an infringement.

But the courts have ruled otherwise, according to Grimmelmann, who cites a 1984 case in which a video store rented movies for customers to watch in booths within the store. The company was sued, and ultimately found liable for copyright infringement.

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[quote author=PILLABACHAPK link=topic=171809.msg2087325#msg2087325 date=1300917346]
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[quote author=PILLABACHAPK link=topic=171809.msg2087325#msg2087325 date=1300917346]
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[/quote]
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[quote author=Sahiti link=topic=171809.msg2087329#msg2087329 date=1300917435]
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[/quote][quote author=Nikkar Narayana link=topic=171809.msg2087334#msg2087334 date=1300917459]
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[/quote]
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[quote author=Abba cha!! link=topic=171809.msg2087380#msg2087380 date=1300918143]
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[/quote]
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[quote author=Abba cha!! link=topic=171809.msg2087380#msg2087380 date=1300918143]
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[/quote]

[img]http://i53.tinypic.com/n6ul8z.gif[/img]

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