Update: Merlin vs. Last.fm

Yesterday Last.fm announced a direct payment system making it among the first on-demand services to compensate d.i.y. acts. Hypebot questioned how fair the payment structure was and indie trade group Merlin issued a strong warning to its 12k members questioning it.

Based on a statement by Merlin's CEO to PaidContent Hyepbot also reported that they were contemplating legal action. Asked if they had sought legal advice, Merlin's Charles Caldas said, "...we’d do whatever we feel is necessary to ensure that our members’ rights are properly protected." But a Merlin spokesmen this morning sought to tone down the threat saying, "Merlin continues to take a positive approach to negotiations and want to deliver a comprehensive deal for our members."