In 2008, UMG Recordings sued Veoh Networks because Veoh not only provided Web sites, but also invested in Web sites that allowed certain copyrighted materials to be distributed from the sites....

In 2008, UMG Recordings sued Veoh Networks because Veoh not only provided Web sites, but also invested in Web sites that allowed certain copyrighted materials to be distributed from the sites. Although Veoh Networks did not participate in managing or running the Web sites, the plaintiffs argued that Veoh was a large investor and as such had control over the Web sites and the content and actions of the Web sites. Veoh attempted to dismiss the claims that it was responsible for the possible copyright infringement by the Web sites it invested in. Do you think that, as an investor, Veoh had inherent control over the Web sites and thus responsibility for their content? How do you think the court decided? UMG Recordings, Inc. v. Veoh Networks, Inc., 2009 U.S. Dist. LEXIS 14955 (C.D. Cal. 2009).