Viacom Slaps YouTube, Google with Lawsuit - Google's Statement, and Some Background
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When asked for a statement, Google sounded pretty confident that it would prevail. Company spokesman Steve Langdon said that "We have not received the lawsuit but are confident that YouTube has respected the legal rights of copyright holders and believe the courts will agree. YouTube is great for users and offers real opportunities to rights holders: the opportunity to interact with users; to promote their content to a young and growing audience; and to tap into the online advertising market. We will certainly not let this suit become a distraction to the continuing growth and strong performance of YouTube and its ability to attract more users, more traffic and build a stronger community."
I've already mentioned Viacom's demand that YouTube take down 100,000 video clips in February. Even at that point, Viacom was attempting to negotiate some sort of licensing agreement with Google. Google and YouTube have already succeeded in negotiating such agreements with Warner Music Group, CBS, Universal Music Group, Sony BMG Music Entertainment, and most recently, the BBC. Still, it's widely known that Google held back $220 million from its purchase of YouTube in an escrow account specifically to deal with any lawsuits that may come up.
Another point worth keeping in mind while considering this lawsuit is that YouTube is not the only game in town for Viacom when it comes to online video. In late February the company struck a deal with online video start-up Joost to license its programming content. Joost, created by the founders of Skype and Kazaa, uses a peer-to-peer model, but aims to show high-quality video in a copyright-friendly format. While Viacom's licensing deal with Joost doesn't include some of Viacom's most popular programs, at least at first, those may eventually be involved - and their value is likely to be diluted if anyone and everyone can watch those same videos on YouTube.
But getting back to Viacom's lawsuit, the big question is whether YouTube has been acting in a legal manner to protect copyright. One assumes that they'll use the defense that they're a common carrier, and therefore not responsible for how their community uses their service. That particular defense isn't always successful (the various lawsuits concerning peer-to-peer networks come to mind). But are they a common carrier?
Next: Some Key Points from Viacom's Complaint >>
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