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March 14, 2007
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Viacom Files Copyright Infringement Lawsuit Against Google

Viacom Seeking More Than $1B From Google’s
YouTube In Copyright Infringement Lawsuit
Viacom has filed a federal copyright infringement lawsuit in N.Y. against YouTube-owner Google seeking more than $1B in damages and an injunction that would “prohibit Google and YouTube from using its clips,” according to Georg Szalai of the HOLLYWOOD REPORTER. The complaint alleges that YouTube has made available about 160,000 unauthorized video clips from Viacom’s cable networks — including MTV, Comedy Central and VH1 — and that the clips have been viewed more than 1.5 billion times. Google said in a statement said the company is “confident that YouTube has respected the legal rights of copyright holders and believe the courts will agree” (HOLLYWOOD REPORTER, 3/14). In L.A., Chmielewski, James & Mulligan note “several book publishers and news agencies have sued Google for alleged copyright infringement, though none has Viacom’s deep pockets or fighting instincts.” Until recently, Viacom was one of “several companies struggling to reach deals that would allow them to share in the YouTube advertising revenue that their shows generate.” NBC Universal “recently sent a letter warning that Google should better protect copyrighted material.” TV producer Ben Silverman: “When YouTube was a fun start-up that wasn’t monetizing the content, I was fine with it. But the moment they sold themselves for $1.6[B] and became a service that was making money off other people’s content, the game changed” (L.A. TIMES, 3/14). Vanity Fair media critic Michael Wolff said Viacom’s “proposition is very, very clear and very basic. It is, ‘You have to cut us in on this business.’” He added, “What Viacom and all the other media companies are going to do is ... force Google literally to give them a piece of the YouTube business or potentially a piece of the Google business” (“On The Money,” CNBC, 3/13).

STOCK WATCH: Google shares fell 2.6% on Tuesday to $443.03. At presstime, shares were trading at 440.00, down 0.68% (THE DAILY).


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