LONDON, Jan. 30 (UPI) -- Independent music labels in the United States and Britain, upset with YouTube over how content is used on the site, are threatening legal action.
The labels are upset with terms the social networking service proposed for the use of copyright-protected work, Billboard said Tuesday. They said the terms offered them weren't the same as offered to major labels.
Search engine giant Google agreed on Oct. 9 to buy YouTube for $1.65 billion in stock. On the same day, YouTube announced new deals with Universal Music Group and Sony BMG that were patterned after is agreement with Warner Music Group.
"We fully expect to be compensated fairly and on par with the larger companies, we will not accept second-rate terms because we are smaller companies," said Simon Wheeler of Britain's Beggars Group, home to such acts as Thom Yorke and Basement Jaxx. "If we have to take legal measures to protect our rights we will do so."
Independent labels represent 30 percent of the worldwide market, said Peter Gordon, founder of the Connecticut-based Thirsty Ear and vice president of Worldwide Independent Network.
"It may be a rude awakening, but here we are," he said.
