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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]

Microsoft announced a deal last week with Universal Music Group stating that they would pay Universal for every Zune device that is sold.  It’s not clear why they’re doing this, but it’s starting to sound like they’re just trying to get the labels on their side.  UMG Chairman and CEO Doug Morris is showing full support for the new Zune, and nobody else.

UMG refused to license its music to the Zune unless it could receive a percentage of each device sold, in addition to standard music licensing fees for downloads and subscriptions.

“These devices are just repositories for stolen music, and they all know it,” Morris said. “So it’s time to get paid for it.”

Read [Billboard]

Not only is Microsoft prepared to pay hundreds of millions of dollars to market and develop the Zune, but they’ve also struck a deal with Universal Music Group to pay them for every Zune device sold.  The deal was cut clearly in hopes “to have more freedom to allow song-sharing or other promotions” (AP).  In the few days before the Zune launches on November 14th, I wouldn’t be surprised to see Microsoft partnering with others in the music industry.

Kind of ironic that they’re trying to build a reputation on a “damn the man” approach, but still allowing the record industry to control their every move.  Maybe they can learn a thing or two from the YouTube approach - let people do whatever the hell they want, and strike deals with the industry so no-one gets sued.

Apple on the other hand, has no deals with the record industry on the sale of the iPod - only the sale of songs on the iTunes Music Store.  For products that are so much the same, we’ll just have to wait and see which strategy wins in the end.

Read [Yahoo News]