DivX, Universal Music Duke out Demons in Court

DivX has filed a preemptive federal lawsuit asking that a judge
"exorcise" the "specter of litigation" surrounding its services.

Universal has told DivX that its site, which utilizes Stage6 video
hosting, is "knowingly involved in the infringement of UMG's
copyrighted materials, and exploits that widespread infringement for
its own commercial gain."

DivX has noted it complies with the DMCA and that Universal can
request the removal of any copyright-protected video that appears on
the site.

YouTube, Google and BitTorrent have suffered similar grievances from
major entertainment content dealers.

Vice President Peter LoFrumento of Universal contacted Ars Technica to
express his "bafflement" at DivX's lawsuit, as the two companies are
currently negotiating terms.