Dragging web link icon on desktop fails w "Error while copying..."

[Greg Malone]

When I attempt to move a desktop icon that is a browser shortcut (Chrome) to another location on the desktop, it fails with this error:

"Error while copying.
The file "files" cannot be handled because you do not have permissions to read it."

Dragging regular app icons on the desktop does not have this problem.

Here is the content of an example web link icon that has the problem:

[code]
~/Desktop$ cat OwnCloud\ Web.desktop
[Desktop Entry]
Encoding=UTF-8
Name=Link to Files - ownCloud
Type=Link
URL=https://sharpestcrayon.com/owncloud/index.php/apps/files/?dir=/&fileid=4
Icon=/home/greg/Pictures/owncloud-square-logo.png
Name[en_US]=OwnCloud Web
[/code]

System:

Ubuntu 16.04 LTS

google-chrome-stable:
  Installed: 53.0.2785.89-1
  Candidate: 53.0.2785.89-1
  Version table:
 *** 53.0.2785.89-1 100
        100 /var/lib/dpkg/status

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.