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Article

Title: War is Declared

Author: Staff Article Type: Product Analysis
Source: The Economist, v382 n8520 p70(1) Publication Date: Mar 17, 2007
  ISSN: 0013-0613
URL of Publication: http://www.economist.com

Google's YouTube, says Viacom, which admits that YouTube is wildly popular, is also a parasite that has built a lucrative business out of exploiting the devotion of fans to others creative works in order to enrich itself and its corporate parent Google. That's how Viacom described its launching of a lawsuit against Google and YouTube for copyright infringement. Viacom is demanding $1 billion in damages. Google's response was as follows: YouTube is great for users and offers real opportunities to rights holders: the opportunity to interact with users and to promote their content to a youthful and expanding audience, while tapping into the online ad market. Viacom demanded that YouTube, to comply with the Digital Millennium Copyright Act (DMCA), take down 100,000 clips from the YouTube site. The act has a safe-harbor provision for those who remove copyrighted content as soon as the owners ask that they do, but the clause applies only if a site does not gain financially from the infringement. Google contends that Viacom's clips are popular on YouTube because Viacom does not make them easily available on its own site. Google and YouTube have recently inked deals with large media companies, which bolsters the argument of Robert Peck of Bear Stearns, who notes that YouTubes relatively low revenues really depend very little on amateur videos that have been uploaded, but mostly result from availability of old-fashioned, professionally produced content.

Companies:
TecTerms Viacom Inc
YouTube Inc

Products:
Video Sharing YouTube.com

TecTerms:


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