Copyright Issues
Stage6 did not permit the upload of copyrighted content without the original author's permission, and a large volume of content was deleted for breaching these terms. Despite this a large amount of copyrighted content continued to be uploaded, with television shows, feature films and music videos routinely hotlinked to Stage6 by third parties offering television or film downloads.
In December 2006, Universal Music Group (UMG) sent a cease and desist letter to DivX, Inc., notifying them that several of their videos had appeared on Stage6. DivX removed the videos in question but were reapproached several months later by UMG who proposed a licensing agreement and suggested DivX pay $30 million for "past infringements". Anticipating legal action, DivX filed a preemptive lawsuit against UMG on September 6, 2007, asking for a declaratory ruling to affirm Stage6's legality under DMCA safe harbor provisions. Six weeks later UMG filed a copyright infringement lawsuit against DivX, arguing that their trial was the appropriate venue for DivX's question to be answered. On February 5, 2008, UMG's request was upheld.
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