So says Universal. Perhaps you've read of the case where Universal demanded that a YouTube video featuring a toddler dancing to a Prince song be taken down. The Electronic Frontier Foundation is pressing to have that action declared frivolous, and, while it may seem so on the surface, the surface doesn't carry much weight in court. Turns out Universal may have a point, according to this story. Of course, you can have a point and still be both wrong and contemptible, as Universal has been from the start on this one.
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Contempt
Universal is acting petty. So far, they have found support for their position difficult and hard to defend so they find increasingly thinner arguments to posit; trying to find something, anything, to squeeze another dime out of the consumer.
Instead, they are reducing their exposure in the marketplace and creating a contentious relationship with their customers, both real and potential. I seriously doubt that anyone watching that video recorded the low quality audio to avoid having to purchase a retail version. The exposure Universal and Prince got from the cute video probably sold some music. Universal is shooting itself in the foot by shutting down free advertising.