• Reuters, Wednesday, November 8, 2006 11:30 AM

A couple of weeks ago, Internet media mogul Mark Cuban published an anonymous post on his Blog Maverick Web site alleging that Google set aside $500 million to settle copyright claims as part of its $1.65 billion takeover of YouTube. On Tuesday, Google CEO Eric Schmidt refuted those claims.

Schmidt's denial came during an interview conducted by renowned search specialist John Battelle at a Web 2.0 conference in San Francisco. He said the deal did not include a reserve for legal claims, but he was quick to add that progress was being made in getting media companies to sign copyright deals that would insulate both companies from future litigation.

Crucially, Google and YouTube were able to secure key copyright deals with record companies on the eve of the acquisition's announcement. Universal Music Group, Sony BMG and Warner Music Group have each signed revenue-sharing deals that would allow YouTube to host copyrighted content, provided that it is used in a manner approved by the rights holder.

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