EMI, online music sellers said to put talks on hold

EMI Group and online music sellers including Microsoft Corp. halted talks on removing copyright protection from songs because they couldn’t agree on the size of an advance payment, people briefed on the offer said.

EMI demanded an upfront payment to compensate for its risk in releasing the music without software that prevents copying, the people said. The retailers countered with a lower offer, which London-based EMI rejected, and negotiations are now on hold, the people said.