Zediva, a small startup in 2011, bought DVDs and rented the content (not the physical DVD) to customers legally. Court ordered Zediva to shut down.

Zediva argued that if it could rent the physical DVD without authorization from the studios, as do services such as Netflix under the first sale doctrine, then it should be legal to rent it digitally over the Internet, streaming a movie from one DVD to only one renter at a time. The movie studios argued that streaming a movie is a public performance, which requires authorization. A court agreed with the movie studios and Zediva shut down.

Use the Internet to further research this case and summarize your findings about this case and the court ruling.

Discuss and report your conclusion in a word document by answering the following questions:

What is at the heart of this issue from a Social Informatics?

What are the sides and their positions?

Who are the Winners and Losers in this? What is lost and what is gained and by whom?

How does this issue impact social networks? How does it impact YOU?

How does this issue impact or relate to IP and copyright and in what way?

Does this interpretation of the law make sense? Why or why not?

Are there other similar cases where the court could have issued the same verdict? List your examples.