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Money Well Squandered: UMG Dumped $790,000 on Lobbying in Q3...

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Mmmmm.... is this the best use of precious funds? According to the latest filings, Universal Music Group dropped a whopping $790,000 in lobbying expenses during the third quarter alone. That brings the 2010 total to $2.58 million, an amount that already eclipses the entire 2009 tally $2.38 million.

Of course, this is not the flushest of times for UMG, or any other label for that matter. But proponents would point to needed Congressional action on issues like piracy, and progress on tough bills like COICA (which recently passed the Senate Judiciary Committee).

But the heavy-handed enforcement approach is already raising tricky questions. The shutdown of OnSmash, for example, angered lots of label staffers and artists that relied on the site for content promotion. The RIAA—and by default, UMG—simply regarded OnSmash as a pirate.

Undoubtedly, complicated questions about the role of ISPs and mobile carriers are also front-and-center. Access providers want little liability, though demand for expensive fat pipes isn't coming from email—we'll leave it at that. But can ISPs simply outspend the recording industry and prevail? Absolutely, though some huge firepower ahead from Hollywood is likely to change the calculus.

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