Universal Attacks MySpace And YouTube

Yesterday Universal Music Group Chairman Doug Morris attacked social networking sites like MySpace and YouTube arguing that the sites assist users in violating copyrights of music videos and other content. "We believe these new businesses are copyright infringers and owe us tens of millions of dollars," Morris said. "How we deal with these companies will be revealed shorty.  (Reuters)

If effective, lawsuits could deal a huge blow to these popular sites, but they could also cripple some highly effective viral marketing outlets for both the labels and indie musicians. 

"This is probably a negotiating ploy," said Mike McGuire, an entertainment analyst with research firm Gartner told the LA Times. "Nobody really wants MySpace or YouTube to disappear. The music industry needs them too badly. They’re just figuring out how to get paid." But according to the LA Times, "a company source said Universal Music executives have discussed suing YouTube for copyright infringement if ongoing negotiations with the company are unsuccessful". (more from the LA Times via Coolfer). Stay tuned…this could be fun…