Universal Music Group Lays Down the Law for Bluematter.

Below are the rules that Universal Music Group has stipulated for the use of the music it sells online using it's Bluematter format. We thought you might find it interesting, especially after our Priced to Lose story that focused on the way Big Music is handling their entry into the online music arena.. The point is, are the major labels offering a user any incentive to stop downloading tunes from Napster for free and pay for it? Read this and come to your own conclusion. - editor

SCHEDULE A - Business Rules

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In the absence of contrary Business Rules provided with a Content offer, the following default Business Rules shall apply to all UMG Content:

1. You may only download Content to a portable device that is (i) compatible with the InterTrust Technologies Corp. digital rights management system, (ii) compliant with the requirements of the Secure Digital Music Initiative (SDMI), and (iii) compliant with UMG's content security requirements.

2. You may not copy or "burn" Content onto CDs, DVDs, flash memory, or other storage devices (other than the hard drive of the computer upon which you installed the Software). In the future, UMG may permit you to make these types of copies of UMG Content to certain SDMI-compliant storage media.

Interesting note. Thanks to some heavy lobbying of congress, the RIAA brought into existence the Audio Home Recording Act (AHRA), which gives the RIAA's member companies the right to collect a royalty on all DATs, DAT decks, blank CDs and CD burners. The music industry collects several cents for every blank CD even though the great majority of CD's burned are never used for music files. More important, it means you have already PAID for the right to copy music files to a CD when you buy those blanks. - editor

3. You may not transfer your rights to use any particular copy of Content to another. For example, you may not transfer your rights to another at death, in divorce, or in bankruptcy. This is not an exclusive listing; it is only a set of examples. Notwithstanding this Business Rule, you may email a Content Reference to another consumer to enable that consumer to purchase his or her own rights in Content.

4. You may not transfer or copy Content (with the rights you have purchased) to another computer, even if both computers are owned by you. You will be able to copy locked Content to another computer, whether that computer is owned by you or not, but the rights you have purchased to use that Content will not travel with the copy. In the future, UMG may permit you to make these types of transfer of UMG Content along with the rights you have purchased.

5. You may not print the photographic images, lyrics, and other non-music elements that are distributed with Content.

6. When you purchase the right to unlimited use of Content, the use rights associated with that Content terminate upon your death.

7. There is currently no free UMG Content. All rights must be purchased. The only exception to this rule is that 30 second audio clips may sometimes be made available by UMG without charge.

8. UMG may revoke your rights to use Content pursuant to the terms of the foregoing License Agreement; in the case of a violation by you of the License Agreement; in cases of suspected fraud by you or another; in cases of a suspected security breach by you or another; in order to forestall or remedy any legal exposure to UMG or its affiliated companies; and in other situations in which UMG in its judgment believes it advisable to do so in order to protect Content, the Software, and/or UMG and its affiliated companies.


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