• News Factor, Wednesday, February 21, 2007 10:45 AM

Google is set to make its anti-piracy plans for YouTube a privilege reserved for its media partners. Viacom, which ordered its content off the online video site a few weeks ago, is now said to be pursuing legal action against Google. The media giant called the proposition "unacceptable," while others likened it to a "mafia-shakedown."

For months, media companies have been clamoring for content-recognition technology. However, they thought such a program would be a precursor to setting up a wider content agreement with YouTube, not a privilege reserved only for its partners. Google's decision to hold media companies hostage leaked out less than a week after MySpace announced it would provide Audible Magic's software to block videos containing copyrighted content for free.

Jupiter Research analyst Todd Chanko believes neither YouTube nor MySpace is offering media companies a free lunch. "MySpace might not require a clip fee of content holders that wish to avail themselves of Audible Magic's solution, but ultimately, MySpace requires the content owner to prepare, deliver and upload thousands of hours of digital media," he said, adding that regardless of whether copyright holders are charged, there's still a big price to pay for copy protection. Google is poised to beef up YouTube's legal advisors.

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