A federal judge in Los Angeles has ruled against Universal Music Group in a copyright suit against video website operator Veoh Networks Inc.
U.S. District Judge Howard Matz dismissed the 2007 suit in which Universal accused Veoh of supporting and inducing copyright infringement.
He ruled that Veoh was taking reasonable steps to prevent and take down infringing videos.
Veoh founder Dmitry Shapiro called the decision "a great victory."
Universal, a unit of France's Vivendi, said it would appeal.