U.S. Movie Studios VS Online Video Rental

American Movie Association (The Motion Picture Association of America) has sued the creators of the service Zediva, reports Agence France-Presse.

Zediva administration argues that their resource is  online video rental. That’s why they do not pay royalties to copyright holders for use of their films. However, the representatives of the MPAA believe that in fact for such formulation hides video service , similar to Netflix .

Zediva service was launched in mid-March 2011. As stated on the site, users can rent not only to a DVD movie, but also aDVD-player, located in the office of Zediva. Everybody can get  access to the same movie for 1.99 U.S. dollars or directly to ten – for ten dollars. The service also provides monthly subscription, but due to the large influx of interested users, this option is currently disabled.

MPAA lawyers demand  the shutdown of the service Zediva. In addition, if the claimants win the court case, the creators of the resource will be obliged to pay 150 thousand dollars for each movie, to which access was granted. Among the studios, whose interests are affected by the activities of the creators Zediva, are Disney, Paramount, Warner Brothers and 20th Century Fox.

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