Imeem Signs Licensing Deal With Universal Music Group

Los Angeles, CA (AHN) - Recording giant Universal Music Group Monday will sign an agreement with social-networking site imeem, allowing users to listen to copyrighted music. In return, the private imeem will give UMG a cut of advertising revenue, plus some cash each time a song is played.

Imeem lets its 19 million users include music and video in their pages, but doesn't permit downloads. Such a practice was described as "innovative" by Universal, which in 2006 sued MySpace for not stopping sharing of copyrighted material.

The agreement with Universal marks the largest licensing pact between copyright holders and imeem.

Imeem CEO Dalton Caldwell said the agreement with UMG will give recording companies "a revenue stream they've never seen before," the Wall Street Journal reported Monday.