San Francisco – A two-year-old company called Zediva is
offering streaming of new release movies not available on any other digital
service, claiming a legal loophole enables it to offer the films without
licenses from any studios, reported.

Zediva charges $2 for a two-week
rental of films like "The Social Network" and "127 Hours,"
which are available on DVD but not yet on iTunes or Netflix.

The company
"rents" each user an actual DVD player and DVD, then streams that
video signal online to a user’s computer, tablet or portable device.

Clara, Calif.-based Zediva claims the "first sale" doctrine of U.S.
copyright law allows it to rent or re-sell the DVDs it purchased legally.


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