Google faces $1 billion business model risk

Google faces $1 billion business model risk


TOPICS: Google

IT'S OFFICIAL: Viacom has sued YouTube and Google in U.S. District Court for the Southern District of New York for massive intentional copyright infringement of Viacom's entertainment properties. The suit seeks more than $1 billion in damages, as well as an injunction prohibiting Google and YouTube from further copyright infringement.

In Viacom's own words:

YouTube is a significant, for-profit organization that has 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. Their business model, 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 fact, YouTube's strategy has been to avoid taking proactive steps to curtail the infringement on its site, thus generating significant traffic and revenues for itself while shifting the entire burden - and high cost - of monitoring YouTube onto the victims of its infringement.

This behavior stands in stark contrast to the actions of other significant distributors, who have recognized the fair value of entertainment content and have concluded agreements to make content legally available to their customers around the world.

There is no question that YouTube and Google are continuing to take the fruit of our efforts without permission and destroying enormous value in the process. This is value that rightfully belongs to the writers, directors and talent who create it and companies like Viacom that have invested to make possible this innovation and creativity.

After a great deal of unproductive negotiation, and remedial efforts by ourselves and other copyright holders, YouTube continues in its unlawful business model. Therefore, we must turn to the courts to prevent Google and YouTube from continuing to steal value from artists and to obtain compensation for the significant damage they have caused.

TAKE THE POLL: Is Google afraid of big, bad Viacom?

ALSO: Google: Internet bubble 2.0? and Google vs Old Media: Who needs YouTube? and Why Google will never pay for content and YouTube: What Google CEO Eric Schmidt really thinks

Topic: Google

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  • Viacom willing to fight with Achilles?

    Viacome better you talk and get compensation...I guess, Google has good defense in law, would ask you to proof value(1B$) of your content!

    Kind rgrds
  • In it for the money

    It's interesting that nobody seriously went after YouTube before Google bought it. What changed? YouTube suddently had money.
    glocks out
  • Be Content-Cautious

    The truth is, a digital copy of a piece of art is really easy to obtain. I don't believe YouTube was founded on the principle of theft. It makes more sense the founders just thought everybody wanted to be a movie star on tv, and gave them a chance to have their very own virtual tv set to be a star. This teaches me a critical lesson. I already have a way of dealing with this issue. Thanks, Google and YouTube, for showing me the huge mistakes I myself would rather not make. Come to think of it, this point in my life right here is where I'll probably have made the greatest use of printed newspaper, though it's indirect knowledge I drew from the article I read. This shows me that my mind has been almost exclusively focused on business for the last full year.
  • re: Viacom suit against Google/YouTube

    Even lawyers realize there's no money in a lawsuit against a poor opponent :-)
  • Buying Opportunities

    This news will supress Google's share price, but it will rebound naturally and then get an additional boost when the good news of a settlement (or their victory) comes out.

    I say "BUY GOOGLE!"
  • Just because they have a lawsuit doesn't mean they lost

    I hope Google kicks their butts and then counter sues. These media moguls need to get off their high horse. Let people be free for crying out load. Its that kind of crap that takes a great tool and screws it up for everybody. Some overblown blow hard with too much money sees another opportunity to make more at the expense of peoples liberty. Youtube is community driven. If Viacom wins then the community looses. I say if they win that people boycott Viacom and tell these insatiable money black holes where to stick it. I hope Im not being too offensive but some has to take a stand against that crap.
  • Is Viacom letting its fans share clips this way?

    Is Google really stealing anything when Viacom fails to offer its fans a comparable service that they clearly want to use?

    Rather than suing Google for what the fans of its shows are posting, why not try to find a way to share the revenue? Don't just cut it off. The fans enjoy this and they will not be happy if you take it away from them.

    If Viacom and others succeed at closing down You Tube to protect their greedy revenue stream, they will be eventually left out of the loop as viewers become increasingly alienated from existing network offerings when less encumbered content become available from more savvy producers.

    It will happen. The only question is when. There will be a lot of new ways make money on sharing material on the internet, but the old greedy models aren't going to work anymore, no matter how many people you sue or how many politicians your bribe to see things your way.