Blockbuster will also get favorable payment terms from the studios. Blockbuster has a plan to lower operating costs by about $200 million too. The movie studios made deals with Redbox and Netflix to allow new movies only after 28 days from the release date. [TechCrunch]

Here’s a new type of case that I’ve never heard of before.  LiveUniverse is getting sued for having lyrics on their website.  Apparently lyrics are copyrighted too.

The organizations behind the lawsuit include the National Music Publishers Association, Peermusic, Warner/Chappell, and Bug Music.

“These sites are profiting on the backs of songwriters. It is unfortunate that copyright holders must so frequently divert energies to protect their rights to license and distribute their works,” stated NMPA President and CEO David Israelite. “However, the demand for music prompts a seemingly endless stream of illegal business models.”

These music organizations are also suing Motive Force LLC, a company that hosts a wiki website called LyricWiki that has over 1 million pages of lyrics.  Pennsylvania resident Sean Colombo started Motive Force.

MySpace co-founders Brad Greenspan started LiveUniverse shortly after News Corporation bought out the major social network.