UMG targets MySpace and YouTube for IP infringment...

MySpace, YouTube targeted by Universal Music Group

Excerpts:

"YouTube and MySpace may be next on the music industry's hit list, according to Universal Music Group CEO Doug Morris. Labelling them "copyright infringers," Morris said that the label has plans to deal with the popular web sites and their hosting of infringing videos."

"YouTube "respects the rights of copyright holders," according to the Copyright and Inappropriate Content section of its Help Center. However, it puts the onus on its users to ensure that the material they post is not infringing. Given the type of content available on the site, it's clear that users aren't too concerned about who owns the rights to the material they are uploading. That said, YouTube readily takes down copyrighted material once it is notified."

"The law does provide some protection for both YouTube and MySpace. Since they merely host material, they fall into the category of online service providers under US law, which gives them some basic protections under the DMCA. Once presented with the infamous DMCA Takedown Notice, YouTube and MySpace can avoid further trouble by immediately removing the infringing material."

"Questions of profitability muddy the water. If YouTube and MySpace are shown to be profiting from hosting infringing materials, then the liability question may have a different answer. If the labels can demonstrate a financial loss from the infringement, then the sites' defense becomes a trickier proposition."

"Perhaps the most troubling aspect of the situation is that YouTube represents a huge opportunity for the record labels. The massive amounts of older and obscure music videos available on the site—as well as newer stuff—demonstrates that there is an underserved market here. The question becomes whether the interested parties will be able to come up with a way to profit from the demand or whether the goose that lays the golden eggs will be served for dinner instead."