Amazon's Cloud Drive Ruffles Music Industry
Amazon told All Things Digital that it doesn't need licenses for music storage. What is less clear is whether or not it need licenses for streaming. (In fact, the labels themselves do not seem to be clear on that either.) Insiders told Reuters that unlicensed streaming might be illegal; in 2007, a similar storage locker service was sued by EMI for copyright infringement. EMI didn't win, but the mere threat of the label litigation seems to have kept many from pursuing lockers.
Obviously it makes great business sense for Amazon to go after this market, but the ancillary benefit could be huge. Amazon is one of just a handful of companies with the resources to stand up to the music industry on this one. Like we said, sit back and enjoy.