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Video-Sharing Portals Will Face Lawsuit

For the past few years there has developed a new trend in the Internet that attracted users from all over the world. This trend is the video-sharing websites that have become extremely popular among numerous Internet consumers. This business is tremendously promising, which is confirmed by the recent deal that Google has made purchasing YouTube for than $1.5 billion. More so, the biggest recording company in the World Universal Music has also signed a content licensing agreement with YouTube.

However, Universal Music has not been that good to every company in the business. Recent files had been filed against Grouper Networks Inc. and Bolt Inc. Both companies are operators of two video-sharing websites. According to Universal Music numerous videos and additional copyright material had been downloaded from those sites without authorization, or agreement.

Turn`s out that being a video sharing portal is a risky business. On one hand, the sites that feature content of that sort are extremely popular and can easily make a fortune for their operators, on the other hand the copyright issue cannot be overlooked. However, earlier in the year Universal actually thought about making licensing agreements with both of the operators, but looks like the sides did not come to a satisfying arrangement.