Warner vs. Seeqpod

WMG has decided to test the DMCA Safe-Harbor provisions once again by suing Seeqpod.

The safe harbor principle is the same one that prevents major search engines from being sued every time they link to illegal information or content (though it hasn’t prevented porn purveyor Perfect 10 from going after both Google and Microsoft over the use of its thumbnails). Under the DMCA, service providers who qualify for safe harbor must be notified through a “notice and takedown” system rather than being sued in court.

Actual law. More at the EFF. Seeqpod responds. SAI has the business angle.

It’s certainly possible that the two sides will end up with a deal. The basic template for these is that the startup gives the labels cash and/or equity, plus a rev share or per-stream payment. But the preemptive nature of the lawsuit gives us a hint that Warner is up to something else here.