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Universal Music Reportedly Next to Sell Online

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From Reuters

Universal Music Group, the world’s largest record label, is expected to begin offering songs for sale in a digital format over the Internet this week, with the help of encryption software, sources familiar with the situation said.

Executives at the encryption provider, InterTrust Technologies Corp., declined to comment, deferring to Universal executives, who were not immediately available. Universal is owned by Seagram Co.

Universal, which is home to such artists as Shania Twain, Jay Z and Sheryl Crow, becomes the third of the five major labels to begin offering portions of its catalog for sale in the digital format.

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Sony Music Entertainment, which offers songs by a handful of artists on its Web site (https://thestore.sonymusic.com), was the first to bring parts of its catalog online. Last month, EMI Group offered 100 albums for sale over the Net.

BMG, the music unit of Bertelsmann, is expected to start offering digital downloads this summer, and Time Warner Inc. is expected to make its move in the fourth quarter.

Universal’s decision comes in the wake of a fierce court battle between the record labels and song-swapping software company Napster Inc., which offers a service that allows users of the Internet to download songs from other people’s computers without the permission of the artists or labels.

The battle is the result of the popularity of MP3, the file format that allows music to be stored on personal computers in small packets of data that can be easily copied and transmitted.

The labels have come under criticism from industry observers for attacking fledgling technology companies, accusing them of infringing their copyrights, while moving too slowly to offer their catalogs for download through legitimate channels.

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