Michael Geist sez,
Universal Music Sues Insurer To Pay For Its Copyright Infringement
Earlier this year, the four primary members of the Canadian Recording Industry Association (now Music Canada) - Warner Music Canada, Sony BMG Music Canada, EMI Music Canada, and Universal Music Canada - settled the largest copyright class action lawsuit in Canadian history by agreeing to pay over $50 million to compensate for hundreds of thousands of infringing uses of sound recordings. While the record labels did not admit liability, the massive settlement spoke for itself.
The Canadian case has now settled, but Universal Music has filed its own lawsuit, this time against its insurer, who it expects to pay for the costs of the settlement. National Union Fire Insurance Company has refused, understandably taking the position that the liability reflects Universal Music's own use of copyright works for which it promised to set aside money for future payment.
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