theoddball writes "In what should come as no great surprise, Universal Music Group is preparing to file suit against YouTube for copyright infringement, the AP reports. Discussions with the site's owners have broken down (although talks are apparently still progressing with Myspace / News Corp over similar issues). From the article: 'We believe these new businesses are copyright infringers and owe us tens of millions of dollars,' Universal Music CEO Doug Morris told investors Wednesday at a conference in Pasadena. This development follows last month's announcement that YouTube is negotiating with labels to legally host videos. While the primary complaint is against music videos, one cannot help but wonder if this will also impact the many, many homemade videos using copyrighted UMG songs as a soundtrack (or — *shudder* — a lipsync.)"
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