Digital Millennium Copyright Act is the best friend of those Web companies. But last week Universal Music Group (UMG) has been denied in Los Angeles with their summary judgment regarding with the copyright infringement case against Veoh. UMG is filing for a judgment summary against Veoh regarding the argument that it couldn’t hide the safe harbor provisions of DMCA. The statement is about the Web services are not liable for the copyright infringement of their users.

This is not just the first time it was denied which is trying to sue Veoh, the first one is with porn company. The orders are not only for Veoh but also for YouTube and others also facing DMCA lawsuits.

The DMCA’s safe harbor states that Web services are not liable for copyright infringement if the content is stored “at the direction of the user.” Still UMG is arguing that Veoh should not be cover with the safe harbor because they do a lot of bunch thing such as converting music and video to Flash, breaking it up into chunks for peer-to-peer distribution and allowing users to download it or even stream it.

A Howartd Matz is the judge with the issue and did not buy the argument. And he found the Veoh is the “more persuasive,” nothing that users should agree with the Veoh’s Terms of Service before doing anything like uploading video and it is clearly stated that they prohibit uploading copyrighted material. Which means that the act of uploading the video is considered to be users-directed storage under DMCA.

For more details about this news visit Techcrunch.