John Chow dot Com Free WordPress Installation - Start Your Blog Today!
 

Viacom Slaps Google With $1 billion Lawsuit

written by John Chow on March 13, 2007

How to make $593 in less than one hour

Justin just sent me this CNN link with a Reuters story about Viacom slapping Google with a $1 billion lawsuit. That’s a lot of zeros!

NEW YORK (Reuters) — Media conglomerate Viacom Inc. said Tuesday it filed a $1 billion lawsuit against Google Inc.and its Internet video sharing site YouTube over unauthorized use of its copyrighted entertainment.

The suit accuses Web search leader Google and YouTube of “massive intentional copyright infringement” of Viacom’s entertainment assets and seeks an injunction against further violations.

Read the full story at CNN. I wonder how Google will respond?

Did you enjoy this post? Get John Chow Dot Com updates via email...

Stay up to date with all of John Chow’s tips for making money online and blog posts by subscribing via email. Your email will be kept private and never shared with anyone.

{ 103 comments }

lyndonmaxewell March 13, 2007 at 10:17 am

Wow.. Seems like Google is getting itself into a huge pile of potential debt. With so many clips, it is impossible for Google to deny the their existence. I wonder if Google will attempt to sue the uploaders in a move as well?

Jez March 13, 2007 at 11:06 am

Naa that would be counter productive and they would never be able to prove a given person uploaded, IMO

Saman Sadeghi March 13, 2007 at 2:04 pm

I’m sure Google will remove all of the video’s or, somehow require the rights: $$$$

Gary Lee March 13, 2007 at 6:13 pm

i wonder if they regret buying youtube

Marc March 14, 2007 at 6:46 pm

No, they don’t nor will they. This is no surprise to them. It will boil down to an out of court settlement that will benefit both. This and other lawsuits like it were seen a mile away and preparations were made.

Much like the iPhone name controversy. Full of sound and fury signifying nothing.

HMTKSteve March 15, 2007 at 10:30 am

There’s a great idea. Sue the people who are giving you free publicity for your shows!!!

WildBluff_Matt March 15, 2007 at 7:33 pm

Wow. Sue the uploaders? I hadn’t thought of it. Seems like it would be a huge cost (lawyers and courts) to get small returns (ie. my piddly bank accounts). I’d be surprised to see that happening.

Mark Shead March 21, 2007 at 9:55 pm

Maybe, but probably not. I imagine they know this will take years to sort out and during that time they will be making money.

Erik March 13, 2007 at 10:17 am

Interesting. Google really had it coming by buying out Youtube.

Jez March 13, 2007 at 11:06 am

I think it was a good purchase, it has huge potential, they are only scratching the surface at the moment.

Saman Sadeghi March 14, 2007 at 10:27 am

Very true, as bandwidth increases, so will the number of videos on the net!

WildBluff_Matt March 15, 2007 at 7:31 pm

Yeah, but everyone saw the danger coming so they must have as well. I’m sure they knew what they were doing and have been expecting this.

Mark Shead March 21, 2007 at 9:57 pm

Oh I think they know exactly what they are doing. It wasn’t like this was a surprise.

WesleyTech.com March 13, 2007 at 10:19 am

Massive YouTube censorship and restriction of copyrighted content coming soon to a browser near you!

Jez March 13, 2007 at 11:07 am

Yeah looks that way, then again, Microsoft never split after the Netscape debacle did it?

Saman Sadeghi March 13, 2007 at 2:06 pm

Is this the demise of the Tube?! :?:

Jez March 13, 2007 at 2:30 pm

7 words and shrinking :lol:

If were comment whores, Lyndon must be the pimp :!:

Saman Sadeghi March 14, 2007 at 10:28 am

:lol: Is that the minimum then: 7 words per post?

Marc March 14, 2007 at 6:47 pm

Demise of YouTube? :lol:

You’re joking right?

WildBluff_Matt March 15, 2007 at 7:36 pm

No way. Not after G just dropped 1.6B on that purchase. YouTube isn’t going anywhere. I’d guess it’d become more and more commercialized instead.

Mark Shead March 21, 2007 at 9:58 pm

No it is just the start. Just imagine if Google wins, what YouTube will become. More likely they will settle or the laws will be changed or something.

Scot March 13, 2007 at 10:24 am

We knew the lawsuits would start rolling in eventually ;)

But who is to blame here? The users of the site who have uploaded the videos or Google for hosting the videos on their servers?

Saman Sadeghi March 13, 2007 at 2:08 pm

That’s the same question that Napster fought and lost!

Gary Lee March 13, 2007 at 6:14 pm

It’s the network’s fault for not realizing that they need to start embedding advertisements into the shows so that when people distribute them, the advertisers can still be happy with their ad purchase!

Saman Sadeghi March 14, 2007 at 10:32 am

That was one of the founding principles of YouTube: no adds. If content providers embedded ads, users would find a way to post videos with them!

We am 5mart!!1!

Mark Shead March 21, 2007 at 10:00 pm

The ads need to be part of the shows. Like product placements.

David March 14, 2007 at 11:47 pm

ahhh…fond memories of Napster :twisted:

Roger Wong March 13, 2007 at 10:39 am

“I wonder if Google will attempt to sue the uploaders in a move as well?”

Google wouldn’t sue the uploaders, they’re the bread and butter of the YouTube model. I don’t think much is going to happen, they can remove the videos per requested under the Safe Harbor provisions of the DMCA and are not held liable for the actions of their users. On the other hand, Viacom could request YouTube to identify (e-mail, IP, etc.) who the uploaders are and then sue them (like the RIAA does). In any case, Viacom should be looking for a rev-share deal with YouTube instead of trying to force users to consume their media elsewhere.

Justin AKA Shocker March 13, 2007 at 10:48 am

YouTube will not sue their users, which would be stupid. YouTube will say they really try hard to remove copyrighted content, and most content will be removed within x amount of time, and if you contact youtube, they will remove it in 10mins or less… etc. That’s all they can do, for the most part….

Jez March 13, 2007 at 11:05 am

I bet they dont know how to track most of them down, what do they have, a mail address, not sure thats enough to make anything stick, its up to them to police the site and ban users…

Saman Sadeghi March 13, 2007 at 2:12 pm

They don’t have that info, but your ISP does. YouTube has your MAC address, IP address and the date you uploaded the video.

Mark Shead March 21, 2007 at 10:01 pm

Um. How would YouTube have your MAC address?

Ryan J. Parker March 13, 2007 at 10:59 am

This is why Mark Cuban has been really against YouTube (or Gootube as he calls it) because of all the copyright infringement that built it into what it is today.

I’m interested to see how this plays out, because I can see both sides of it.

Jez March 13, 2007 at 11:03 am

That is a lot of zero’s, I wonder how they came up with that figure??

There is a lot of copyright material on there. Its a bit unfair though, youTube could actually increase sales of the genuine article, if people like the clip. Still Google is a cash cow and they should have seen this coming.

Ryan J. Parker March 13, 2007 at 11:51 am

I’m sure it’s that large mostly to get attention. :mrgreen:

Saman Sadeghi March 13, 2007 at 2:14 pm

I doubt it was for the attention… :neutral:

Gary Lee March 13, 2007 at 6:15 pm

seriously . . a settlement’s coming behind closed doors. We’re not going to be talking about this in a couple of days!

David March 14, 2007 at 11:48 pm

So true…We won’t be hearing anything of it soon…

Mark Shead March 21, 2007 at 10:02 pm

Good point. Do they think they would have made an additional 1billion dollars if You Tube didn’t exist?

WildBluff_Matt March 15, 2007 at 7:38 pm

Mark Cuban is a smart guy on some things, but man has he made some bad decisions along the way. I’m thinking of a bad, bad reality show Mr. Cuban had once…

Joseph.C March 13, 2007 at 11:15 am

:eek: With all the smart folks at google…I would think they would see this coming.

Aris March 13, 2007 at 11:39 am

Does that mean, they really like to play with fire?

Ryan J. Parker March 13, 2007 at 11:52 am

Actually they did see this coming and had part of the money paid to the original YouTube owners set aside for fighting these type of lawsuits.

Saman Sadeghi March 13, 2007 at 2:15 pm

Yeah, I would imagine that this was a thought!

Mark Shead March 21, 2007 at 10:04 pm

Oh I’m sure they did see this coming. It wasn’t a surprise.

Ed Lau March 13, 2007 at 11:18 am

I honestly don’t see the big deal. There are only short clips of TV shows, trailers, sports highlights and music videos on YouTube. Personally, I think this will blow up in Viacom’s face just like how shutting down file sharing is impossible for the RIAA.

However, the good move for Google would probably be to settle at a much smaller amount. Other broadcasting and media companies are starting to see the potential and popularity of YouTube…it’s only a matter of time really.

Aris March 13, 2007 at 11:48 am

This is interesting. I really can’t wait to see the outcome, since this could be another ploy for advertisement for viacomm. But I could be wrong.

Jonix March 13, 2007 at 12:19 pm

google is a giant, is a “standard” in this days. I doubt this will become the news of the year. Google will for sure do a deal with this guys (and others) and everything will be allright in the end of the battle.
If we think a little, this kind of news and battles, brind more attention to youtube, more and more traffic, more AD sales, more revenues…google is allways winning.

Saman Sadeghi March 13, 2007 at 2:16 pm

It would be a big deal to you, if it was your content! There are entire episodes on the Tube!

WildBluff_Matt March 15, 2007 at 7:40 pm

I agree. It’s low quality, short portions of bigger things. If anything they spark people’s interest and make them want to check it out more.

Gustav Mörtberg March 13, 2007 at 11:18 am

I am sure that Google wont have a problem with this one, but it’s fun to see how the Google stock trembles. ;)

Aris March 13, 2007 at 11:50 am

What happens now? Does that mean it has already started to tremble? :lol:

Jonix March 13, 2007 at 12:19 pm

Don’t count with that.

lyndonmaxewell March 13, 2007 at 7:37 pm

I haven’t heard any news of the stocks weakening. I guess it will only suffer a blow IF Viacom succeeds in their case.

WildBluff_Matt March 16, 2007 at 6:47 am

Google’s stock has such a long way to go before it starts to hurt.

derrich March 13, 2007 at 11:29 am

Viacom needs something right now. Might as well sue the most popular video site on the planet. :roll:

Saman Sadeghi March 13, 2007 at 2:17 pm

You think this is a way to make up for the whole Boston “Terror” plot?

lyndonmaxewell March 13, 2007 at 7:18 pm

Well, that’s the only way to grab some real attention for them now.. :)

Aris March 13, 2007 at 11:37 am

I thought a post on my blog that linked to this post will automatically show up here. It turned out there is some delay. :lol: Could that because John needs to approve it first? :???:

Jonix March 13, 2007 at 12:20 pm

or the askimet plugin has stoped your trackback has spam, unfortunally sometimes that happen. And then only john can de-spam the trackback.

Saman Sadeghi March 13, 2007 at 2:21 pm
Aris March 13, 2007 at 3:40 pm

Oh, okay. That means for a busy site like this, it would take time before being shown here. At least, if I were Joh, I would have a hard time to follow, ehm, all this “dedicated comments,” particularly from you or me. :lol:

Colin Dean March 13, 2007 at 12:01 pm

I urge y’all to read Larry Lessig’s blog post about this. He provides some commentary on why Viacom is going after Google/YouTube instead of just lobbying Congress like they’ve done in the past.

Kenny March 13, 2007 at 12:04 pm

Google has plenty of $ and they will eventually work out some sort of deal where both parties are happy.

Tyler March 13, 2007 at 12:11 pm

This is a huge bonehead move on Viacom’s part. They are suing the very company that gives them all the free advertising for their product that they could ask for and then some.
It was posted upthread, and I agree, that the best thing for companies to do is to leverage Youtube for the networking phenom that it is…don’t try to buck the trend, use it to your advantage.
Maybe I should work in the marketing dept. at Viacom?

Joshua March 13, 2007 at 12:33 pm

I agree it’s the best thing to do (leveraging the Youtube network) BUT you only have to look over to the music industry to see that they will sue, sue and sue until they have no choice but to join their supposed enemy.

Some of the smartest business minds teach us to embrace change or get left behind, yet you’ve got some major entities trying to live in the old days (like whenever music labels had their peak? whenever the only place to watch a movie was down the road at this ‘cinema’?) and fight the natural progression they cannot stop.

Evil men like John Chow, smart Australians like Mitchell Harper and YOU who read this blog to learn and be like them, are perfect examples of changing to embrace the situation.

Saman Sadeghi March 13, 2007 at 2:22 pm

The problem is that there are entire episodes on The Tube!

lyndonmaxewell March 13, 2007 at 7:12 pm

It is a matter that will happen sooner or later, just that Viacom has taken a lead on a pretty big lawsuit. Who knows? Others are just waiting and banking on the outcome.

Saman Sadeghi March 14, 2007 at 10:51 am

They need to take the same approach as NBC, CBS and the others: Upload the content yourself so you can guarantee quality and whatever else you want.

WildBluff_Matt March 15, 2007 at 7:42 pm

Yeah, and it makes them look like jerks. Just like back when Metallica pulled this same type of stunt. Pissed a lot of people off just like this is doing.

Kubiac March 13, 2007 at 12:17 pm

I think Viacom is just out for a free payday. All they are doing is giving Youtube and Google more press time. Its funny how they feel exploited and they have problem made more money since Youtube has been in existence

Jonix March 13, 2007 at 12:22 pm

Tyler and Kubiac, you guys hited the point! that’s it, all of this it’s just “show-off”, and bring attention to viacom, google and youtube (free press advertising).

Mark Shead March 21, 2007 at 10:05 pm

I’m not convinced that they expect to win. They are probably looking for a settlement of some type.

Matthew March 13, 2007 at 12:30 pm

bankrupt google! :twisted:

take em down a billion at a time

lyndonmaxewell March 13, 2007 at 7:13 pm

lol, I still want my search engine! :D

Saman Sadeghi March 14, 2007 at 10:54 am

Me too, I live on Google and rely on so many of their services – why to people hate them so much? Because they are successful? Because their products work? Because it’s free?

David March 14, 2007 at 11:53 pm

Same here, google is my homepage, my search engine, my maps, almost my everything on the net…except my many frequented blogs…

Agloco Viewbar March 13, 2007 at 1:30 pm

Is the the beginning of end of web 2.0 bubble?

Mark Shead March 21, 2007 at 10:06 pm

I would not count on it.

Mr. Stockshaker.com March 13, 2007 at 4:34 pm

YES!

YES!

YES!

I love shorting google.

Saman Sadeghi March 14, 2007 at 10:55 am

Why? What is so wrong with Google? :?:

WildBluff_Matt March 15, 2007 at 7:43 pm

Google scares me. People used to go on and on about Microsoft ruling the digital world. But these days I think Google is the one that’s going to be in charge of things real soon.

skintube March 13, 2007 at 5:25 pm

Google’s response should be simple enough. I see your billion dollars and raise you and “anything” Viacom related being completely delisted from Google.

That would shut Viacom up fast if they had any brains about them. If you don’t exist on Google, you don’t exist. Shutter their asses back to the stone age and see how they like it. Google has a huge hammer it can wield if it so chooses.

lyndonmaxewell March 13, 2007 at 7:10 pm

I agree. Blacklisting them from Google searches. I have heard that this dealt a major impact for several companies online.

Saman Sadeghi March 14, 2007 at 10:56 am

Sorry guys, but that would never happen. Just imagine the bad press Google would get if they did that!

Mark Shead March 21, 2007 at 10:08 pm

That is actually a pretty funny idea, but it would hurt Google in the long run.

Dinner March 13, 2007 at 10:26 pm

WHAT?!? That’s crap. Go after the people that are putting it up there.

Mark Shead March 21, 2007 at 10:09 pm

That may be the outcome of this lawsuit more than anything else.

IndoDX March 14, 2007 at 12:58 am

When there are company that have success, their must ready from outside the world problem ;)

Aaron Cook March 14, 2007 at 1:48 am

Interesting suit, and I’m not surprised. But Google won’t sue the uploaders; they’re obviously the meat and potatoes of the YouTube environment.

All in all, I’m not certain this lawsuit will amount to too much in and of itself. Most likely, Google will remove the videos in accordance with the DMCA Safe Harbor Provisions and won’t be held legally liable.

However, Viacom could actually request that YouTube identify the email addresses and IP addresses of those who illegally uploaded the Viacom material, and sue them – like the Recording Industry Association of America does.

However, I, myself, see there to be much better and more profitable ways in which to go about this. Let’s see if they can find those ways on their own.

Shine on,
Aaron

Bob March 14, 2007 at 1:59 am

“Viacom” is still showing up as the first search listing on Google, be interesting to see if they lower it down to the Supplemental Result area.

Mark Shead March 21, 2007 at 10:10 pm

If they knock it out of the rankings just because of the lawsuit it would be very bad for Google because of other lawsuits.

carl March 14, 2007 at 2:24 am

It looks like google has a challenge!! :twisted:

TheAnand March 14, 2007 at 8:26 am

hey john, maybe the shares of google will go down and sally will b able to buy a few of them!

Swollen Pickles March 15, 2007 at 5:42 pm

This is probably one of those “it was only a matter of time” things. Be interesting to see how the result pans out.

Mark Shead March 21, 2007 at 10:14 pm

I’m guessing it was expected.

WildBluff_Matt March 15, 2007 at 7:30 pm

What a crock. How can they justify 1B in losses??

Mark Shead March 21, 2007 at 10:12 pm

I think this is more about public opinion and policy.

Mark Robinson March 16, 2007 at 7:22 am

You had to see this coming – Google must get about 100 lawsuits a day.

Zach March 20, 2007 at 3:17 pm

woop dee doo, this is pocket change for google

Zach March 20, 2007 at 3:18 pm

is this because of youtube? :!:

Zach March 20, 2007 at 3:19 pm

this does sound a lot like the same thing napster went through

Mark Shead March 21, 2007 at 10:13 pm

But Google has much deeper pockets.