In a lawsuit filed in a US district court, Universal Music Group has said that it is suing MySpace for copyright violations.
But MySpace said it acted legally and dismissed the "meritless litigation".
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Universal claims that MySpace, a unit of News Corporation, is attempting to shield itself from liability by requiring users agree to grant the website a licence to publish the content they upload to the site.
Myspace, however, says users have no such authority over works they do not own.
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In the complaint, Universal singles out features on the website that enable users to save copies of videos to their profile pages or share them with others on the site.