Viacom Sues Google for 1 Billion Dollars!

See Funny YouTube Video at: Boycott Viacom

We saw it coming Google, did you? We've been trying to keep up with these massive media moguls mergers, acquisitions and popularity. You might say that the internet news enthusiasts could have predicted this coming along, but with that said, we have to assume that Google kind of knew it too.

Read some past articles,

Google and YouTube Face Copyright Infringement

Google Makes Empty Promises Concerning YouTube

Google Copyright Infringement, At Least One Lawsuit

To get an idea of some of the latter news that that has plagued Google since Google acquired Youtube.com

Well, Viacom finally laid down the law, suing Google for 1$ Billion. Wow, now that's not chump change, even for Google. And, Google is losing money on Youtube, even up until this very moment. (You can read the latest article on that if you click the link)

Internet law, while clear, is a growing facet of our world, and has it continues to complicate, grow and change, there will be some serious lessons learned. Lesson learned #1 to all those big companies looking to purchase an internet community hoping to triple your exposure and advertising dollar:

A 1.76$ billion purchase, might double in end price due to the rising interest in the internet, and you might just be the next example of a new internet smack down on laws.

Apparently Viacom was in the works of making some deals with Google concerning their all too obvious exploitation of clips, pieces and creative work from some of Viacom's major networks:
MTV, Comedy Central, VH1, Nickelodeon.

ARTICLE CONTINUES BELOW:


Turns out those "deals" fell through, and Viacom asked (for lack of a better word) Google and Youtube to remove more than 100,000 copyright owned videos from their site. Google agreed and removed the videos. Meanwhile, Viacom found over 50,000 more videos directly violating the creative copyright of their owners.

Enough is enough!

According to MSNBC, and the article I got this news from: Viacom Sues Google
Viacom is saying (all in different contexts of course):

“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.”

“which is based on building traffic and selling advertising off of unlicensed content, is clearly illegal and is in obvious conflict with copyright laws.”

In Response? Google has said:

“that YouTube has respected the legal rights of copyright holders.”

“We will certainly not let this suit become a distraction to the continuing growth and strong performance of YouTube and its ability to attract more users, more traffic and build a stronger community,”

Viacom had some things to say. While they have speculated to be threatened by Google and Youtube due to their clear exploitation of the cable network's T.V. shows and pieces, they have also been taking other routes to possibly try competing with the conglomerate. In a news clip from earlier:

T.V. Networks discussing YouTube Rival

Viacom talks about this exactly.

We'll see how this works out, but just so the bad boys know, us internet geeks have been watching this train wreck come into fruition since just about day one. Poor Google, GO US! :)

Google and YouTube Merger...Still In The Hole

The infamous merger of Google and Youtube.com has stirred issues, problems, concerns and interest for internet enthusiasts, investors and hip young video lovers alike.

To read some previous coverage I've done on news concerning the YouTube and Google Bond, check out these posts:

Google's High Risk Youtube Investment

Update: Google and Youtube Face Copyright Infringement

From their struggling copyright issues, to the concern over whether or not YouTube is still the freshest, most popular online video distribution website among the slowly mountaining sites out there offering this service. Joost and Daily Motion to name a few of the possibly competitors in what was once a monopolized industry.

Murdoch has some insight when it comes to investing, but does he know this "industry" as well as it knows itself? I don't think any "consumer" of the YouTube site could tell you whether or not it will be their website of choice in a week, a month, a year. Why? Because when something better comes out, they'll switch just as fast as you can say, " . com"

While Youtube and Google are currently in deep. And, when I say deep I mean under profit,

"An analyst report last week from Bear Stearns & Co. showed that YouTube had revenue of $15 million in 2006, which means Google paid more than 100 times the video site's annual intake."

they don't feel there is yet a reason to start selling their personal shares of Google...Duh.

They're doing what they can, cutting deals and working with their assets. To read more about this story: Google And Youtube Merger

Google Makes Empty Promises Concerning Youtube

Youtube.com was so popular because it allowed anyone and everyone ability to post videos, without having to worry too much about copyright issues. In essence, it was fun, fun watching videos, fun uploading videos, fun finding videos that weren't released yet...I'm sure you've browsed Youtube.com and once or twice thought to yourself, I bet I wasn't supposed to watch this!

Since Google bought You Tube there have been all kinds of copyright issues, money paid to companies to avoid lawsuits, and lots of big music corporations, including Universal Music, putting their foot down on widely distributed copyrighted videos.

Here are some of my previous posts, as I've tried following this very serious and confusing issue:

TV Networks Discussing YouTube Rival

Google Copyright Infringement Confirmed: At least One Lawsuit

Google and You Tube Face Copyright Infringement

Google's $1.65 Billion purchase, a High Risk Investment?

These are in order from most recent, to latest.

Anyway, on to the latest, latest Google-Youtube copyright issue. Warner Music made Google and Youtube promise to have an anti-piracy system in place that would feature an "advanced content identification and royalty reporting system."

Google broke their promise.

It was promise to Warner Music in exchange for the free distribution of videos, artist interviews and other music related content.

The new addition to the site isn't up, but Youtube has a warning at the bottom of the videos, "Use at your own risk."

Not so much fun anymore. Youtube could end up being the late Napster. Everyone stops using it after a few horror stories about users doing jail time for downloading their favorite "Eminem" video. Time will tell!

Update: Google and Youtube face copyright infringement

UPDATE for article:
Google's $165 Billion Purchase of YouTube.com-High Risk Investment?


Turns out, there are already some issues with YouTube's vast accessibility and possible copyright infringements. Dick Parsons, the chairman and chief executive of Time Warner has specifically stated that they are pursuing all copyright issues that were previously acknowledged and in the works before Google purchased Youtube. Apparently they already have negotiations with Youtube, not exact figures were given, but I'm sure it involves some kind of monetary percentage when it comes to viewers. Now that Google is involved, the chairman is going to kick it up a notch, the playing field just got a little dirtier. Google attracts four times the amount of viewers that Youtube does, and trust me, Youtube had some viewers! He is quoted as saying,
"We'd like to have our content displayed on these platforms, but on a basis that it respects our rights as the owner of that content."

This isn't the first set of negotiations involving Google's new partner, nor will it be the last. The grouping of these tremendously powerful internet giants is stirring up the already effervescent concoction of money, power and advertising initiatives.

Here's just one example:

Who is mad?: Doug Morris, the chief executive of Universal Music. Called Youtube and Myspace "copyright infringers"

Who's he mad at?: Rupert Murdoch of News Corp, owns Myspace

Who else?: You tube, Google owns them

So What?: Murdoch owns Myspace, who creates 60%-70% of the traffic to Youtube. Google bought Youtube, which is now causing some possible copyright issues all on it's own. Myspace's Murdoch (News Corp) wants to extend advertising deal with Google (who owns Youtube) due to their direct influence over Youtube's traffic (now owned by Google) that Google will in turn quadruple due to their already mammoth viewer ship. Pissing Doug Morris off even more! Unless, of course, he comes to some kind of contract deal with them, as many already have.

Whew!

Yea, who's made revenue sharing contract deals? Huh?

• Warner Music, agreed to allow it's music library on Youtube


• Sony BMG


• CBS

From a quote in "Guardian Unlimited" Google faces copyright fight over YouTube:
YouTube founder Chad Hurley has also sought to play down copyright fears. "We're committed to developing tools to identify the content and monetize it so [content owners] can have a new outlet for their content."