Judge tells Zediva to stop Web streaming of movies

LOS ANGELES (AP) – 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 start-up Zediva.

The MPAA said 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 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.