licensing fee

When Zediva launched, we already knew it was going to face a legal fight from the MPAA and the movie studios.

The company lets people stream movies they want to see, but tries to get around the legal licensing issues by only streaming directly from internet connected DVD players, playing legitimately acquired DVDs.

Their argument is that it's really no different than renting a movie and bringing it to your own DVD player.

CNN Money: "Here's how the software business really works: A software company charges your firm an enormous upfront licensing fee and locks you into escalating costs for decades to come, often using a set of hardball tactics."