Record label EMI has struck a deal with music social-networking site imeem, allowing users of the music sharing site to legally stream songs from the label's catalog. In return, Imeem will split its ad revenues with EMI every time someone listens to one of their songs.
The labels are interested in imeem as a way to promote new bands. Back in July, Warner Music Group dropped a copyright infringement lawsuit against imeem and instead came to a content agreement deal with the start-up. Since Warner's suit, imeem has started using audio filtering software from Snocap (founded by Napster creator Shawn Fanning) to filter out tracks that labels don't want shared. Sony-BMG also signed a deal with imeem last month, which means Universal Music Group is the only major label not on board.