Zediva bows to court order, suspends online DVD service


Location:
Sunnyvale, CA, United States

Online DVD service Zediva Inc. has suspended operations to comply with a federal court order sought by Hollywood studios, which sued the Sunnyvale startup for copyright infringement. Zediva sent an e-mail to notify customers the company was shutting down it service, which rented new DVD movies online for as little as $1. However, the company said it was not giving up and its website labeled the shutdown as an "intermission."

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