Universal to take on MySpace and YouTube
Saturday, September 16th, 2006The Universal Music Group is set to take on MySpace and You Tube over copyright, alleging that the sites are allowing users to post copyrighted material.
“We believe these new businesses are copyright infringers and owe us tens of millions of dollars,” Universal CEO Doug Morris was quoted as saying.
“How we deal with these companies will be revealed shortly,” he said.
Morris has a point. Universal Music Group does own the copyright of the music and videos of its acts, and it’s pretty obvious that some of the music and videos being posted are violating copyright (some but not all, as some online providers of music and video code have the appropriate licenses).
However, what Morris doesn’t realize is that the world have changed, and it’s not just MySpace and YouTube. Sure, they may recover some damages from these companies, but as many corporations have found, the old rules no longer apply.
Take the example of Napster. Yes the music industry has managed to clean up Napster, but what can it really do about the open-source alternatives, such as Bit Torrent, that have sprouted up as alternatives?
My advice to Morris is that his efforts would be better spent adapting his business model to the new competitive environment, and instead of taking on MySpace and YouTube, he should be turning them into partners. Though, I’ll be the first to admit, that this is easier said than done.