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Just An Online Minute... Viacom Vs. You/Tube: The Copyright Games Begin
by Wendy Davis, Tuesday, March 13, 2007, 3:00 PM

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Setting the stage for a legal showdown over the limits of copyright law in the age of video-sharing, Viacom today filed a federal lawsuit against Google/YouTube.

Viacom has a litany of complaints against YouTube, stemming from the appearance of "more than 150,000 unauthorized clips" from Viacom-owned TV shows and movies that have surfaced on the site.

For one, Viacom alleges that YouTube has profited from the copyrighted clips, using them to draw an audience. "YouTube deliberately built up a library of infringing works to draw traffic to the YouTube site, enabling it to gain a commanding market share, earn significant revenues, and increase its enterprise value."

Additionally, Viacom grouses that when it demands that YouTube remove specific clips, they tend to resurface -- sometimes within hours -- uploaded by other users.

And Viacom gripes that YouTube has the capability to weed out infringing content, but is only deploying that technology selectively, for companies it's forged deals with. "YouTube has deliberately withheld the application of available copyright protection measures in order to coerce rights holders to grant it licenses on favorable terms," states the complaint.

But, while Viacom obviously aims to show that YouTube has treated it unfairly, it's not at all clear that the media giant has the law on its side. The Digital Millennium Copyright Act arguably protects companies like YouTube from copyright infringement suits as long as they remove infringing content when the owner complains.

Viacom gripes that it shouldn't have to continually enforce its copyright, but the DMCA appears to put the burden of enforcement on the owner in these situations. Of course, the act has enough fine print to leave room for argument, but Viacom can expect a long, uphill battle.

14 comments on "Just An Online Minute... Viacom Vs. You/Tube: The Copyright Games Begin "

  1. Kimberlee Morrison from Know More Media
    commented on: March 21, 2007 at 11:41 AM
    I believe the DMCA is written to place the onus on the copyright holder to prove its case just like any other plaintiff in a legal battle. I think the writers of the legislation also understood the nature and democratization of digital media. Whether Viacom believes it should not have to defend its copyrights, that is not what the company is doing by suing YouTube; Viacom wants make an example of this very popular user-generated video-sharing site. It's like saying "It's about principle." Well principle does not always win in the end.

  2. Vanette Sherrill from Texas Press Clipping Bureau
    commented on: March 19, 2007 at 10:36 AM
    The "internet" generation shows an appalling lack of consideration for others' creative works in thinking that they have the "right" to post, download & share that which they have neither created, produced nor purchased the rights to distribute.

    Companies that HAVE invested the time & money to create & produce & distribute should actively and aggressively pursue copyright violators. After all, if these people were stealing the DVDs/CDs from a retail outlet, wouldn't we expect the law to pursue them? "Online shoplifting" should be treated the same way.

    Allowing YouTube and others like it to illegally re-distribute copyrighted material opens the door to the elimination of copyright protection for EVERYTHING - not just music, movies, tv shows, but also newspapers and magazines, ad campaigns, business proposals, trade secrets, software, research, books, artwork, patents, trademarks, etc. Is this a direction we really want to go?

  3. Dan Thomsen from CareerBuilder
    commented on: March 19, 2007 at 10:12 AM
    YouTube, or p2p video shraing, is an taking an important, if not essential, step towards closing the relevance gap. Each of us writing to this board makes use of a variety of web 2.0 technologies and "new media" in our private lives. The companies that we work for use some, if any, but not all of these technolgies. Our business models must continue to evolve if we are to stay relevant in this 21st century environment that is increasingly contolled by the consumer. If the public wants to see replays of copywrited material they will see it. They will find the way. If we are to profit from new technologies and new channels of distribution there is a lot of work that needs to be done in the think tank, and not in the courts.

  4. robert zager from iconix, inc.
    commented on: March 13, 2007 at 7:22 PM
    The burden of policing infringement is not as simple as Jim Miller suggests. Read the DMCA (particularly 17 USC 512(d) and 512(i)), the 9th Circuit opinion in Napster and the Supreme Court opinion in Grockster.

  5. Josh Lovison from MediaPost
    commented on: March 13, 2007 at 7:07 PM
    Something to consider are the implications of a court case finding Google/YouTube in the wrong for infringement.

    If that happens, then some user uploading a song or video that is under copyright to their RoadRunner homepage just opened the door for the copyright holder to sue TimeWarner for infringement with a high profile prior ruling in their favor. The DMCA was worded as it is to protect the interests of the "pipelines" and infrastructure of the internet.

    As much as it galls me to say it, the only real legal position Viacom can take is to go after the users that upload their content. This is something they would love to avoid though, as it doesn't exactly build brand equity to sue the community that is essentially your biggest fans. Just ask the RIAA how they are doing in the school popularity contest.

    It's a very tricky issue, and both laws and business relationships need to update themselves to keep up with the times, neither of which are easy or painless for either side of the table.

  6. Michael Cox from M&J Southwest, Inc
    commented on: March 13, 2007 at 6:31 PM
    Of course the law in on Viacom's side. You Tube and every other portal that acts with no editorial restraint can be proven to have willfully and wrecklessly infringed on copyright. Too many companies and individuals on the Internet disregard copyright in a rush to build content. The problem is, none of these people really wants to pay for the content and that is the sticker in the woolen underpants. The editorless society of Internet video (and written word) publishers is like an armada of ships without rudders (or captains) and there are going to be smashups before it is all over.

  7. Mark Sigal from The Middleband Group
    commented on: March 13, 2007 at 5:42 PM
    Mating rituals, nothing more. This is part of a natural process of shaking Google down for better economic terms and more to the point, defining an orchestrated strategy by which the companies can work together.

    I continue to believe that the real value of such short form content is in its role as the virtual water cooler since these clips generate buzz, attention and conversations around a content owner's long form content, which is where they make their real coin.

    These same companies after all SPEND millions of dollars advertising these very same programs.

    That said, the paradox is as much about control as it is about economics. Control of brand, control of content quality and control of monetization decisions.

    One such approach that reconciles these issues is my own company's vQuote video sampling technology. I won't arm wave as this isn't the forum but if interested in such things, here is a URL: http://thenetworkgarden.com/weblog/2007/01/vsocial_launche.html

    Regards,

    Mark Sigal vSocial, Inc. - Say it with Video

  8. Christopher West II from REVShare
    commented on: March 13, 2007 at 5:34 PM
    Sounds like a giant case of sour grapes to me. Google can make money with our content, and we can't!

  9. Zenophon Abraham from Sports Business Simulations
    commented on: March 13, 2007 at 4:51 PM
    Well, I should write that I agree with Jim Miller. I can't agree with the idea that YouTube's stealing when they don't upload the maerial.

  10. Zenophon Abraham from Sports Business Simulations
    commented on: March 13, 2007 at 4:49 PM
    I agree with the above. There are many more reasons Viacom's going to get clobbered in court.

    First, Viacom should be suing the people who copy their programs and upload them to YouTube, if they want to go after anyone at all. There are 77 video-distribution companies like YouTube and..... see YouTube

  11. Mike McGrath from RealXstream PTY LTD
    commented on: March 13, 2007 at 4:45 PM
    The Digital Millennium Copyright Act is simply not sufficient. I don’t want to see anything negative happen to YouTube, it is a great company providing a great service, but when it comes to content that someone else has invested money in to create, YouTube is stealing, and the law needs to reflect this.

    Think for a moment about a traditional bricks and mortar second hand store in your local high street. Every second hand store in the civilized world is legally responsible for ensuring that they do not sell stolen property. If they are found to be selling stolen property then they are at risk of being completely shut down by the law of the land.

    Imagine as a business owner you go into a second hand store and find that they are selling your property which had been recently stolen form your store. Imagine approaching the manager of that store and getting the following response:

    “We are terribly sorry that this has occurred and we will take this item off of our shelves immediately. Unfortunately I am afraid that we cannot take responsibility for ensuring that it will not happen again, because every item that comes into our store for sale is completely un-moderated and unchecked. What I suggest you do is check in with us every 5 minutes just to make sure that we aren’t profiting from selling anything else that may have belonged to you in the recent past. PS If you don’t like it, we’re a big company with money to spare, so see you in court…

    I question why Viacom, CBS or anyone else is expected to police YouTube themselves to make sure that their property is not being sold illegally by a third party? (And make no mistake that just because YouTube is monetizing through advertising it does not mean that the content is not being “sold�).

    In the physical world it is the legal responsibility of the second hand store to ensure that the content it sells in its store not stolen property, and so it should be with YouTube and other non discriminating UGC sites.

    Sites like YouTube have created a simple storefront for small, independent, and individual players to sell their wares, and this represents a golden opportunity for content creators, aggregators, and marketers alike to make the most form this new opportunity to do business. But their needs to be a simple line between stolen content and user’s content, and it is the responsibility of the vendor to ensure that this line is not crossed

  12. robert zager from iconix, inc.
    commented on: March 13, 2007 at 4:33 PM
    DMCA didn't save Napster and the unlawful objective arguments that killed Grockster apply here, too.

  13. Mark Metz from MetroGuide.com, Inc.
    commented on: March 13, 2007 at 3:53 PM
    Wow. As an ex-president once said, "that's billion with a 'B.'" I believe they are suing them under the wrong legal theory in any case. This strikes me as much more of a "unfair and deceptive business practices" case than just copyright, which the DMCA speaks to. YouTube has done possibly irreperable harm to, for example, MTV's brand as a place, perhaps the first place, where young, hip people go to look for video. YouTube has made its brand synonymous with online video, and they have done it using Viacom's own content (and others). To make an offline analogy: imagine if you were a magazine publisher and, after your magazine left the print shop, someone wrapped a sleeve around your cover that presented the magazine as a different brand (and even had an advertisement on the back). The first thing consumers would see is the alternate brand, not your own. "But we did in fact distribut your content," might say the infringer. What's more, even though they didn't ask permission, they'll graciously offer a cut of the advertisement to the publisher. It's a rough analogy, but I think pretty close to what YouTube is doing: using someone else's content to establish their brand and to sell advertising in a wrapper around it. I think it's an unfair business practice and Viacom is doing the right thing to protect their valuable property. Since they used Viacom's property to change the online behavior of millions of users, some perhaps for years to come, they may very well done more than a billion in damages. It's nice to read that Viacom's traffic is bouncing nicely as users direct navigate to their site. Direct navigation, after all, is the thing search engines fear the most.

  14. Jim Miller from Vision Magazine
    commented on: March 13, 2007 at 3:28 PM
    Slight correction: The DMCA doesn't put the burden of enforcement on the copyright owner, the entire history of copyright law puts the burden of enforcement on the copyright owner. The DMCA simply applies that time-tested precedent to the current age.

    This is why Viacom doesn't have much of a chance in this part of their lawsuit. Google/You Tube has every right to give preference to the companies with which they've forged deals. The copyright protection measures most certainly cost Google something. Viacom is asking them to provide a service free that others pay for. To label this as coercion is a load of garbage. Viacom wants to force Google to do their job for them.

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