The world’s largest record company, Universal Music, recently remarked that the video site YouTube.com and social networking site MySpace.com are copyright infringers who owe Universal tens of millions of dollars for the unauthorized use of copyrighted material. The remarks were made by Universal’s chief executive officer, Doug Morris, during a Merrill Lynch investors’ conference. Mr. Morris also stated that Universal would soon reveal how it will deal with such copyright infringement, suggesting that the company may be planning legal action.
Both YouTube and MySpace allow users to upload and freely distribute content, much of which relies on copyrighted material. Universal has been in negotiations with YouTube and MySpace to offer Universal’s musical content to their users. The remarks by Mr. Morris may be an attempt to increase the pressure to reach a negotiated deal with YouTube and MySpace.
In a related story, YouTube signed a deal with Warner Music Group to access its video music catalogue days after Universal’s threats.
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