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October 17, 2006

Universal Sues Video sharing sites Grouper and Bolt.com

posted by MR WAVETHEORY at 10/17/2006 01:34:00 PM

Universal Music Group is suing Grouper.com and Bolt.com. Grouper was recently acquired by Sony Corporation (NYSE SNE). What does this mean for online video sharing? For one, Google has deals with Sony BMG Entertainment and Warner Music Group. YouTube has signed deals with CBS, Sony BMG Entertainment and Universal Music Group.

In one incident, it claimed a video for the Mariah Carey song “Shake it Off” was viewed more than 50,000 times on Grouper without the company’s permission.

Universal is demanding that they halt those actions and pay millions of dollars in compensation. Universal also reserved the right to add Sony Pictures Entertainment to the suit. Sony acquired Grouper in August for an estimated $65m.

Reuters has additional details.
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