Veoh Seeks Court Protection From Universal Music Copyright Suits

Authored by Mark Hefflinger on August 9, 2007 - 2:58pm.

San Diego - Video-sharing site Veoh Networks announced on Thursday that it has filed a pre-emptive legal action against Universal Music Group, asking a judge to declare that its service does not violate copyrights.

San Diego-based Veoh said it received "unreasonable threats" from the label that it would sue Veoh for copyright infringement, so it filed an action in federal court to "reinforce its rights as a copyright compliant company under the safe harbor provisions of the Digital Millennium Copyright Act."

Under the law, it is up to copyright holders to issue a "takedown notice" when they find their content on unauthorized sites.

Veoh chief executive Steve Mitgang told TechCrunch the company has never received such a notice from UMG.

Veoh, whose site attracts 16 million monthly visitors, also said it is working with the MPAA and other content holders to implement filtering technology and compliance tools on its service.

"It is unfortunate that UMG prefers to take actions that are designed to stifle innovation, shut down new markets and maintain the status quo instead of working to change and evolve models for today and the future" said Veoh CEO Steve Mitgang.

"We are disappointed that we were forced to take this action, and consistent with our policy, are prepared to respond when and if UMG provides us with DMCA notice."

"Universal Music Group is enthusiastic about using technology to build communities, as evidenced by our deal with YouTube," a Universal Music Group spokesman told Reuters.

"But that's not what Veoh is all about. Rather, it's about trying to build a business on the backs of our artists and songwriters without fairly compensating them for the use of their works."