Universal, which earlier this year announced lawsuits against video sharing websites bolt.com and Sony-owned Grouper over copyright infringement, filed the lawsuit after a breakdown in licensing negotiations with News Corporation, according to the Wall Street Journal.

In the suit, filed at California's Central District court, Universal alleges that much of the material on MySpace is stolen from copyright holders.

MySpace and Universal have been negotiating toward a deal in which News Corporation would pay a licensing fee for Universal content. However, News Corp balked at Universal's demand that the Rupert Murdoch-owned group pay restitution for content that had previously appeared on MySpace, not just at the present, according to the Wall Street Journal.

http://media.guardian.co.uk/newmedia/story/0,,1952750,00.html