much debate and disapproval regarding Amazon's Cloud Drive, the online retailer is
finally meeting with record labels today to discuss licensing rights.
Cloud Drive is an internet-based storage application that
offers 5 GB of storage free of charge. Users can store music, pictures and
documents in the cloud and pull them up on different devices. The Cloud
Drive also features a Cloud Player, which is a music streaming
Amazon first launched the Cloud Player in March of this year, record labels
were angered at the fact that Amazon hadn't paid for licensing rights to stream
music to its users. According to those in the music industry, Amazon only had
licensing rights to sell digital downloads, which may make the new Cloud Drive illegal.
released a letter to record labels on Monday saying that the Cloud Drive is
legal, and even compared it to Microsoft's SkyDrive or Google Docs. The
letter also noted that Amazon's Cloud Player is similar to Microsoft's Windows
Media Player, and that it had increased sales of digital songs in Amazon's MP3
Amazon's disagreement with record labels over the legality of the Cloud Drive,
the online retail giant is willing to meet with record
labels today to discuss licensing rights.
don't publicly discuss our meetings with partners, and we have not announced
any changes to Amazon Cloud Drive or Amazon Cloud Player since the
launch," said Cat Griffin, an Amazon spokeswoman.
labels are likely eager to meet with Amazon as well since the risk of other
companies following in Amazon's footsteps is too great to chance. Other
companies could create services like the Cloud Drive, where the music
industry is not included in regards to licensing rights.