Universal Music Group has filed a lawsuit against MySpace.com of Santa Monica asking that the popular site be shut down for allegedly encouraging users to violate copyrights.

The suit, filed Friday morning in federal court in Los Angeles, says MySpace “knowingly and intentionally” encourages users to participate in stealing Universal’s copyright material by providing a venue and the tools to do so. The suit is seeking $150,000 for each offense, which could easily total hundreds of millions of dollars.

Some examples in the suit allege that MySpace users created accounts entitled “u222222222222” or “youtwo” where songs by the Irish band “U-2,” a Universal band, are played and are available for download on the site. Advertisement revenue is generated for MySpace. Universal is shut out.

MySpace said in a statement that it respects all copyrights and added that “it’s unfortunate [Universal] decided to file this unnecessary and meritless litigation” and added that the site is “in full compliance with the Digital Millennium Copyright Act,” the law that governs digital music and how it is regulated on the Internet.

Earlier this year, YouTube.com struck a deal with Warner Music in which the Web site shares ad revenues with Warner in exchange for using copyright material.

“An amicable agreement must be reached here or both sides are going to suffer substantially,” Michael S. Sherman, an intellectual property expert and entertainment attorney at Jeffer, Mangels, Butler & Marmaro LLP, said.

News Corp., which owns MySpace, was also named as a defendant.