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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".
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.
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.