Universal Claims Deezer.com Is NOT Legal

Following the launch of Deezer, a free online music streaming website, Universal is as expected expressing its concern about its business, and immediately claimed that Deezer was illegal, despite the fact that the website signed an agreement with the state organization, named SACEM, responsible for collecting artist's rights-related financial fees linked to tracks and albums played during all public audience/performance (clubs, radio, concerts, etc.). So, while the SACEM is "defending" artists' interests independently of their individual contracts with different Music Majors, Universal claims the agreement is between Deezer and SACEM is illegal, and the major to ask its catalog to be removed from Deezer's database.
Universal is acting this way to avoid loosing control about the way it intends to distribute its catalog, and with which partners. It follows the same strategy used to kick iTunes Store out of the DRM-free trial as we reported earlier. Indeed, Deezer.com was launched couple of days after Universal and Neuf Telecom, a French ISP, announced an agreement to offer Neuf internet users an "almost free" access to Universal Music catalog. If the figures are unknown, it is official that Neuf Telecom paid Universal a substantial amount of money to obtain this agreement. So, having an ads-based online streaming service, namely Deezer.com, being ready to offer the same thing for free and legally, is simply unacceptable for the Major.
We will closely follow this story as the legal aspect will define the future of the SACEM and bring lights on how Majors can potentially bypass laws, or rules, simply to avoid recognizing their inability to adapt their business plans to the new ways consumers expect to enjoy music.