Universal Music has decided the best way to obtain licensing fees from MySpace is to sue them first, establish an infringement, and then do the deal. At least, that appears to be their strategy, according to the NY Times.
The lawsuit, filed in federal court in Los Angeles, is seen as part of a strategy by Universal to test provisions of a federal law that provides a â€œsafe harborâ€? to Internet companies that follow certain procedures to filter out copyrighted works…If Universal can win in court, it is likely to gain leverage in negotiating licensing terms with user-driven services â€” just at the moment that those services are attracting deep-pocketed partners.
MySpace seperately announced a new tool that would allow copyright holders to flag videos used without permission. Right…pure coincidence, I’m sure.