Tom Bawden in New York
Download 'Too Hot', an exclusive Specials track from iTunes
Viacom, owner of the MTV channel, has finally sued Google for more than $1 billion (£520 million) after months of negotiations, claiming that the search engine’s YouTube video-sharing site amounts to a “massive intentional copyright infringement”.
The suit, filed in the US District Court for the Southern District of New York, also seeks an injunction preventing Google and YouTube from further copyright infringement.
Viacom, which also owns Nickelodeon and Comedy Central, claims that there are nearly 160,000 unauthorised clips of its programming on YouTube, which have been viewed about 1.5 billion times.
The daily satirical shows presented by Jon Stewart and Stephen Colbert are among the most viewed programme clips.
Viacom, which forced YouTube to remove more than 100,000 clips last month, said that it had decided to sue because settlement talks had been “unproductive”. The company wants to be paid for the inclusion of its content on YouTube.
A Viacom spokesman said: “YouTube is a significant, for-profit organisation 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 unlicensed content, is clearly illegal and is in obvious conflict with copyright laws. After a great deal of unproductive negotiation and remedial efforts 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.”
Copyright law compels YouTube to remove all content that it does not hold the rights to if it receives a complaint from the owner. YouTube regularly receives such requests from media companies and readily complies with them.
The suit represents the biggest confrontation to date between a major media company and YouTube, which Google bought in November for $1.7 billion.
Other media companies such as CBS and NBC Universal have also clashed with YouTube over copyright issues but have reached deals to license their material.
Universal Music Group, a unit of Vivendi, had threatened to sue YouTube, saying it was a hub for pirated music videos, but later reached a licensing deal with the company.
Viacom recently agreed a deal with Joost, a new “peer-to-peer” television company, to distribute the company’s television shows and channels online. Analysts said that agreement appeared to pave the way for yesterday’s lawsuit.
The move comes less than a week after Eric Schmidt, the chief executive of Google, said media companies would have no choice but to put their television shows and films on video sites such as YouTube. “The growth of YouTube, the growth of online, is so fundamental that these companies are going to be forced to work with and in the Internet,” he said.
YouTube last year said it intended to introduce digital fingerprinting technology that could automatically identify copyrighted video and audio clips in order to remove them or share related advertising revenue with content owners.
In a statement, Google said that it believed the courts would agree that “YouTube has respected the legal rights of copyright holders.”
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Nobody seems to be taking into account the DMCA, which says YouTube is safe from these lawsuits as long as they comply with take-down requests, which they do. Viacom has no case.
Matthew Flaschen, Atlanta, GA, United States
In my opinion the damages are also statutory in nature, in the arena of $150,000 per program. YouTube broadcasting same without licensing the registered & copyrighted content not only deprives Viacom of revenue, it also diminishes its future dollar value due to the "scarcity concept" wherein that which is overexposed tails off in demand, and hence, in revenue potential. Furthermore, it is of such a material nature that it may force Viacom to revalue its content assets upon its books, and therefore diminishes equity value. Saying that, can Viacom shareholders suits against YouTube be far behind? It's a very slippery slope indeed!
Frankly speaking, in my opinion it is outright stealing wherein YouTube is aiding & abetting copyright infringement.
B. R., Esq., Beverly Hills,
The purpose of TV programming is to wrap something entertaining around advertising. There is no profit in making a TV show. The money is made from advertising. The clips on these websites don't include advertising. Sure, you may make the arguement that DVR is also a workaround, but that path is also being worked over by the Entertainment Industry. Also, it's important not to confuse the issue by intermingling the music industry with the TV industry with the movie industry. All are based on separate business models. Each is pursuing the end to free distribution of their products, but for separate reasons. Then they all meet back at the end to count their money. Google is no different. Google is either very stupid or very conniving. If they knew that the Ent Ind was waiting for someone to purchase YouTube in order to get some deep pockets to sue, then they have a plan to make money despite that (conniving). If they didn't realize that fact, they are shortsighted and stupid.
Bob Clark, Appleton, Wisconsin
I watch programs on youtube when i like and how often.
It beats most programs and it's easier to use.
With channels on TV i have to get into a scedule of what i want to watch and when.
Youtube is just easier and more convenient.
Brett, biggleswade, UK
You Too can sue Viacom in a class action suit for depriving you of fair use of copyrighted material (parody, criticism, praise) and for restricting your public rights to freedom of speech. I think 100Billion should be enough to get get $10 per person!! The public have rights also, this issue is not just between Viacom and Google.
John, San Francisco, California/USA
It's the same, silly old argument from the greedy corporations. So what if they "lose" a little revenue from people watching stuff on YouTube? These are an audience that it's very likely wouldn't be watching their shows anyway, so how are they losing? And that's the same with so much piracy: people pirate stuff because they don't have the money to buy the product. It's not that important to them, so they'd only get it if it was free. It's like going to the library to read the newspaper. So a thousand people read it? Does it stop the sale of a thousand newspapers? Of course not. It just means a thousand people get to read the newspaper that wouldn't have otherwise.
And it's the same with YouTube. These are shows that people could do without. It's only the availability of them that makes them attractive. If they HAD to pay, they wouldn't watch them.
Jack Lee, Austin, TX
This law suit will clarify the copyright issue hopefully once and for all. I'm (as are most sane people I imagine) on the side of You Tube/Google. In my view, google has created a far bigger audience for viacom then they could ever have otherwise. Even if Google loses this case, it will not be harmed by it.
Google's model works because it is progressive and not restrictive.
Information should be made freely available in an advanced society, unless the person specifically wants to charge for it.
James, vienna,
Youtube is the new generation of viewing, as such these sort of websites will appear more and more over the next few years. I think Viacom is a load of crap, sueing for what, free advertisement?? I have watched many clips from shows on youtube, and it has influenced me to go out and buy these, shows / products. I don't understand personally how watching a show on Comedy central? is differeny from watching a taped show off comedy central (even though it's never the whole show)? Do I actually have to watch the show the time it aired? what if i'm working?? or asleep? I support youtube totally, and as a Fan, I will back them the whole way. If Youtube gets sued I will donate $200's to them in support, Viacom needs to catch up on modern trends and technology they shouldn't sue because they have failed to identify a lucrative market!!!!!!!
Adam Webb, Buckingham, UK
Using a VCR or DVD burner is for your own personal use, it is no different from using a video camera in a cinema, and distributing it for free (but in this case, personal use would also be wrong).
YouTube is just like Napster was in the late 90's, a means to get access to copyrighted material, and in the end the artists/distributers suffer.
If I spent $XXmn on a TV show, only to get no money from advertising as no one watches it on TV, but on YouTube for free, would I be happy - no!
James, Essex, UK
I wish people would stop these lawsuits against Google and YouTube. Even if there content is uploaded to YouTube, you could just as very well video record it on your VCR or DVD-Burner at home and give it out ot the public free. Nobody is SELLING content on YouTube so what's the harm?
Plus the shows's television stations and such get credit because nobody is stupid enough to think that YouTube is a television station producing these shows. They still get credit - if not more. I can't tell you how many times I've watched thins on YouTube that I'd have never watched on television.
Just stop screwing with Google/YouTube and leave them alone!
Blaine Bugasi, Northwest Indiana, United States
Sounds like Youtube is the new Napster. It was only a matter of time with the increase of bandwidth.
Ben, Camden, Australia
youTube is being singled out. Many many websites engage in this kind of practice - but they aren't owned by someone with deep pockets. But overall youtube must take measures to prevent copyrighted material from sticking around, or they will face more and more lawsuits. Especially if they lose the first round. Ouch!
Jake, Seattle,