Bertelsmann eyes Net vid

Teuton co. looking to set online VCR

BERLIN -- Having apparently developed a taste for controversial Internet sites, German media giant Bertelsmann is in talks with RecordTV.com, an online video-recording site, which is the subject of a lawsuit filed by the Motion Picture Assn. of America.

The two companies are said to be developing a system that would allow broadcasters to make programs available on-demand via the Web.

RecordTV operates as an online VCR that allows users to record and replay TV shows when it suits them.

Lawyers claim that RecordTV is violating copyright laws and needs a license to Netcast programs.

Bertelsmann is involved in free television through its RTL Group and attempting to become the world's leading Internet media player.

Last month it joined forces with Napster, which allows people to download and swap copyrighted music over the Internet. Bertelsmann agreed to drop its lawsuit against the service as part of a deal to develop a membership-based distribution system that would stop people from downloading for free.