is copyright the killer app to user generated content websites?

since the world has learned that my space and you tube and these sites were not on line for a cultural purpose but to make money (ie since a big company with deep pocket bought it), their staff more under pressure are the legals.
the majors, music and movie majors, got into the playground to close a deal with them or to sue them.
what i found great is that the latest legal action against my space, which came from universal, is considered by the major as a test to provision of the federal laws.
marketing vox reported:
http://www.marketingvox.com/archives/2006/11/20/universal_music_sues_myspace_for_copyright_infringement/index.php

did news corp or google get into the user generated content arena too late?
did they pay too much money now that they have to share advertising revenue with all other majors?

Technorati Tags: my space, you tube, copyright, money, advertising