By Michael Hoven
Zediva Closes Permanently, Pays $1.8 Million in Settlement
The streaming movie service Zediva has agreed to shut down permanently and pay $1.8 million to settle its lawsuit with Hollywood studios, Wired reports. (The MPAA is hosting the consent decree from the Central District Court of California.) The studios sued Zediva in April, one month after it launched its service. Zediva let users watch movies online by remotely renting and operating DVDs and DVD players owned and stored by Zediva. Zediva argued that because it rented DVDs to only one customer at a time, it operated like a video rental store and did not need to have licensing agreements with studios. As JOLT Digest previously reported, this argument did not stop the district court from issuing a preliminary injunction against Zediva in August. PCMag.com reports that the MPAA applauded the “strong message” Zediva’s shutdown sent to potential infringers and considered the shutdown a victory for the film industry.
Power Rangers Halloween Costumes Lead to Lawsuit
Owners of the intellectual property rights associated with the Power Rangers television series have sued the operators of a website for selling the Power Rangers’ colorful uniforms as Halloween costumes, according to The Hollywood Reporter. SBC Power Rangers LLC alleges that the costumes sold at MyPartyShirt.com (operated by Underdog Endeavors) infringe its copyrights and trademarks. Though clothing is not eligible for copyright because of its utilitarian function, “individual design elements” may be copyrightable. The Celebrity Justice blog at Findlaw says that while the patterns on the Power Rangers costumes could be protected by copyright, the stronger claim is that MyPartyShirt.com violated a trademark by using the Power Rangers name on its site.
U.S. Marshals to Seize Righthaven’s Assets to Pay Legal Fees
The District Court of Nevada ordered U.S. Marshals to seize $63,720 that Righthaven owes in legal fees as a result of its ill-fated lawsuit against blogger Wayne Hoehn, reports paidContent. The court dismissed Righthaven’s copyright suit against Hoehn this summer and awarded legal fees to Hoehn. Righthaven claimed that it could not afford to pay the roughly $30,000 award; the size of the award has since doubled as Hoehn’s lawyers have worked to enforce the judgment. While Righthaven’s legal strategy—the lawsuit against Hoehn was one of nearly 300 similar suits—garnered it some favorable settlements, it has not succeeded in court, as JOLT Digest has reported. Righthaven owes a variety of defendants over $200,000 in legal fees, according to Poynter, and may end up in bankruptcy.