By Garrison Fairfield

Sorry for the corny title, but I thought it would catch your attention.  Since VideoEgg launched a few years back it has been one of my favorite companies to follow.  They had a cutting edge business model and one of the most talented staffs in the industry (all Yale, Stanford and Harvard execs).  So I took it personally when I read this lawsuit cross the wire yesterday.  EMI has pretended to be a user driven label, they were one of the first to actively pursue DRM ‘free’ distribution.  However, lately they have been attempting to grow by litigation and lawsuit driven revenue.  This particular suit includes VideoEgg, the social network Hi5, along with 10 other companies to be named later.

Matt Sanchez, the CEO of VideoEgg, told TechCrunch’s Michael Arrington that EMI never requested any videos to be removed from their online video network and that they also integrated the AudibleMagic software which should have blocked copyright infringing content from being uploaded.

This is one of the first times that a video platform company has been brought into a copyright lawsuit and could be a sign that EMI is getting desperate and simply seeking to derive revenue from anyone connected to their material.  One other interesting item to take notice of with this suit is that VideoEgg is no longer video enabling websites, they have turned into a rich media and video advertising network.  This means that EMI’s main goal is not to create a distribution partnership, they are looking to recoup video plays that were played over the past couple years.

One of these days EMI and other big labels are going to have to wake up and realize the industry has changed forever and re-focus their efforts on becoming a player in the new world of social media and digital distribution.