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  (Source: gottabemobile.com)
Record labels are upset over Amazon's Cloud Drive announcement when the online retailer failed to address license-related negotiations

Just yesterday, Amazon announced its new cloud-based storage service called Cloud Drive, which is quite a feat considering the online retailer jumped ahead of huge tech companies like Apple and Google in the race for music streaming services. But now, the music industry is stepping in, and could possibly slow Amazon's progress.  

Cloud-based music storage has become a popular option for those who use multiple devices. For companies like Amazon, this method of music streaming is a great alternative to relying on CD sales. While other companies continue working on their versions of cloud-based services, such as Apple's MobileMe music component called a "locker," and Google's music service that was rumored to be released with the new Honeycomb launch (but reports are now saying that Google execs are still in the midst of chatting with record labels), Amazon leaped ahead of the game with Cloud Drive, which offers 5 GB of online storage for free and saves album or MP3 purchases to the cloud automatically.

Customers can upgrade to 20 GB of space by purchasing an MP3 album. Also, the Cloud Player allows users to play their music through a PC, Mac or Android-based phones. However, those with an Apple iPhone cannot partake in Amazon's new service.

But now, Amazon may be running into some trouble with record labels, like Sony Music, who was angered by Amazon's new service launch "without new licenses for music streaming." 

"We hope that they'll reach a new license deal," said Liz Young, a spokeswoman for Sony. "But we're keeping all of our legal options open."

Record labels were informed of the new Amazon service last week, and Amazon had not yet addressed license-related negotiations at that point. An executive close to the Amazon discussions, who preferred to remain anonymous due to the confidentiality of the discussions, noted that Amazon's new service might be considered illegal to those in the music industry.  

"I've never seen a company of their size make an announcement, launch a service and simultaneously say they're trying to get licenses," said the executive. 

While users are allowed to store music files on their own computers, it is "unclear whether they have that right when they use remote storage services offered by cloud computing." 

A similar situation occurred in 2007 when EMI sued MP3tunes because they offered a service similar to Amazon's.  

"The labels have engaged in a legal terror campaign over the last 10 years using litigation to try and slow technology progress," said Michael Robertson, MP3tunes founder, regarding the Amazon situation.



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RE: Gotta love it
By LRonaldHubbs on 3/30/2011 10:41:50 AM , Rating: 3
Exactly. If I buy MP3s and download them to my computer, nothing stops me from signing up for a Dropbox.com account, uploading my MP3s to the cloud, and accessing them when and where I want. All Amazon did was simplify this by offering their own cloud hosting service. The record labels are just being greedy as usual. Any time audio content moves anywhere for any reason they want a cut. I hope the record labels lose this battle.


RE: Gotta love it
By Uncle on 4/1/2011 3:09:25 PM , Rating: 2
Sorry to disappoint you, but Amazon will cop a deal with the Music industry. Amazon will not take a chance and lose any future deals with the music industry because the Music industry will not renegotiate Amazon selling their music. Amazon will probably sign some NDA and pay the music industry a few pennies per download and put it in the cost of the goods you buy from them, and have the consumer think how nice Amazon is to allow you to store your music in the clouds so you come back as a repeat customer.


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