UMG TO TAKE NAPSTER TO THE MAT

Much like the stand it took in its negotiations with MP3.com, Universal Music Group said it is unlikely to pursue a settlement with Napster before the courts decide if the song-swapping software violates copyright law.

Vivendi Universal CEO Jean-Marie Messier told Reuters Thursday (1/11) that, while he was eager to see music distributed on a variety of online platforms (including his own, Vizzavi), he still believes that any distribution channel has to respect the intellectual property rights of artists.

UMG collected $53.4 million in damages from MP3.com after a legal battle that saw all the other majors settle for lesser pay out. UMG, along with its competitors, has since agreed to license its catalog to MP3.com's My.MP3.com service.

"We clearly see that online music can be a legitimate model," he said. "It's not really a struggle between free services and pay services. I think everybody recognizes that there will be a range of services, some of which will be free and others will be pay services. The goal is to propose the right range of services and build our own service models.''

The five major label groups are currently embroiled in a suit against Napster for copyright infringement, claiming Napster needs a license to provide its services. The labels aim to shut down the service. The U.S. Court of Appeals in San Francisco is currently deliberating the issue.