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Hydroshare (http://www.hydroshare.tv) enables recording artists and authorized rights owners to upload their promotional music files as multimedia projects, which are then stored and indexed for mass free-distribution. Hydroshare also indexes and redistributes projects that have been freely released on the web and promoted as viral, creating a curated repository of promotional music (formally called “mixtapes”) and video.
There are two issues of legal liability involved in the operation of Hydroshare:
I. Liability to performance right holders (labels/artists) stemming from the redistribution of promotional music on the Internet.
II. Liability to the rights owners of underlying music reused by the artist in the promotional project.