Tightening The Noose [7:39 am]
The power of settlement precedent in setting the context for copyright enforcement: Universal Near Deal With Video Site on Royalties
Universal Music Group is poised to win a small battle in its war to claim royalties from sites that allow users to upload videos that contain its music.
[...] Bolt has agreed to pay a settlement valued at several million dollars, said Aaron Cohen, Boltâ€™s chief executive. Bolt will also agree to pay royalties in the future any time its users submit videos that contain Universal Music.
[...] To pay for the settlement, which will combine cash, stock and advertising credits, Bolt has agreed to sell itself to GoFish, a smaller rival, for as much as $30 million in GoFish stock.
â€œThis deal is economically painful to Bolt shareholders,â€ Mr. Cohen said. â€œIt is setting a precedent that companies that violate copyright at minimum risk litigation.â€