Hollywood Studios Sue Start-Up Zediva

BY ETHAN SMITH

Six Hollywood studios on Monday sued Internet-movie company Zediva, saying the start-up violates copyright law with its system for showing new movies online for $1 or $2.

The company calls its service a DVD-rental operation. But rather than sending DVDs to customers through the mail, as Netflix Inc. and similar services do, Zediva’s discs sit in banks of players at a Silicon Valley data

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