According to Universal:
It accuses MySpace of allowing people to illegally upload videos and of providing the technology for users to share the content with others.
Now, I could be wrong here but I'm fairly sure that I could use my web hosting to share content, and I can use FTP or cPanel's File Manager web interface to upload the files. Are Universal going to sue every FTP and web upload creator, plus hosts, ISPs and bandwidth creators, for allowing the upload and distribution of content?
It's almost as bad as the file sharing. Their thought process is "file sharing is used by some people to share copyrighted music, therefore the only thing it can be used for is sharing copyrighted music, therefore that was the original intention of the creators, therefore we can sue them and close the network". They completely ignore the fact that people like Linux developers distribute many different distributions throught Bit Torrent and the like