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Universal Music Group is joining the ranks of music companies who are giving away their music for free and in a legal way. The company has announced that it has reached an agreement with file-sharing site Qtrax to offer free, legal downloads of all its digital music. If you would recall, Qtrax announced sometime in January that it has the support of “all major music labels” in its revenue generating ads music download service. But some of this music companies denied Qtrax’s claim, including UMG. Prior to these events, Qtrax was forced to shut down its service a few months after it was launched in 2002 to avoid some legal troubles.

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Universal Music Group, producer of music groups such as 50 cent, Nelly, Elton John, Black Eyed Peas, Vince Gill and U2, has filed a lawsuit against MySpace, owned by News Corp (the parent company of 20th Century Fox Home Entertainment).

UMG claims that MySpace.com “encourages and participates” in illegal distribution of UMG property to increase site traffic and, in turn, increase ad revenues. The amount of damages UMG is seeking was not indicated, though federal law allows up to $150,000 in statutory damages per recording (insert your own “Cha-Ching!” and “Waoooga!” sound effects and facial expressions here). The complaint does demand that MySpace permanently stop allowing users to repurpose, watch, listen to, edit, e-mail or post logos of UMG artists. Looks like MySpace’s liberal use of the, “We don’t ask if you don’t tell,” posting policy is continuing to bite them in the ass.

Via [Digital Music Weblog] Site [Universal Music Group] Read [Home Media Retailing]