When Amazon launched its new Cloud Drive service on Tuesday, the digital retailer did so without establishing licensing deals with record labels, which has led to avery negative response from major labels.
The service – which allows customers to store their music files on Amazon’s servers and stream the music on portable players – has some ambiguous legality, which has led competitors such as Google and Apple to hold off on debuting similar services in order to deal with licensing issues. Billboard‘s sources indicate that many labels are studying Amazon’s service to determine whether or not it has broken copyright laws or the terms of existing deals.
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