MySpace and Universal have been negotiating toward a deal in which News Corp. would pay a licensing fee for Universal content. However, News Corp. balked at Universal’s demand that News Corp. pay restitution for content that had previously appeared on MySpace, according to a person close to the situation.
Cynthia Brumfield makes a good point when she writes,
With two giants duking it out in the federal courts, the likelihood is good that some kind of legal precedent will be set. Maybe video file sharing sites (and other video-enabled Internet businesses) can finally get definitive legal ground rules, whatever they may be, providing a higher degree of certainty so that the industry can move forward.