Sony owned online video-sharing company Grouper.com has denied that they are not liable for charges claimed by the Universal Music Group in a lawsuit that accuses them and other services of internet piracy.

Grouper.com said in a statement that Universal has filed the lawsuit just to boost the popularity of a rival service (YouTube.com) in which it has a minor stake.

Market sources claim that several media companies including Universal Music and Warner Music Group negotiated small stakes in YouTube.com just before it was acquired by the search engine giant Google.com.

Grouper added in its statement that it could not prevent third parties from violating the company’s terms of service that prohibit copyright infringement. The company further said that they are fully compliant with the Digital Millennium Copyright Act.