
Viacom, in 108 pages of court documents, portrays YouTube’s founders as reckless copyright violators who were far more concerned with increasing traffic to their site than obeying the law. Even executives at Google, which acquired YouTube for $1.7 billion in October 2006, questioned the ethics of building a site through questionable copyright practices, according to the Viacom filings. But in the 100-page document filed by Google, perhaps not surprisingly, the search engine tells a different story. Viacom is painted as a media giant trying to play it both ways: demanding that YouTube take down videos even while third parties were uploading Viacom content on the entertainment giant’s behalf. More intriguingly, the parent company of MTV and Paramount Pictures was at one point interested in acquiring the video-sharing site, according to the documents.
“We believe YouTube would make a transformative acquisition for MTV Networks/Viacom that would immediately make us the leading deliverer of video online, globally,” according to an internal Viacom slide that Google filed with the court.
Interesting as the documents may be, it’s not clear which side will benefit most from the disclosures. Google argues that it is protected by the safe-harbor provision of the Digital Millennium Copyright Act, which says, in short, that if a Web site acts in good faith to take down copyrighted content as soon as it learns of it, and it has not benefited financially through advertising or other means, it is protected from a lawsuit. Viacom is attempting to pierce that protection by proving that YouTube employees, at the very least, knew of rampant copyright violations on their site and did little about it. U.S. District Judge Louis Stanton, in the Southern District of New York, set March 5 as the deadline for filing for summary judgment and gave the parties until April 30 to file opposing arguments to each other’s motions. All the arguments should be completed sometime in June. If the case proceeds to trial, it should occur sometime this year.
Legal scholars believe that the outcome of this landmark suit could well determine who gets to profit the most from content: the people who pay for its creation, or the people who help disseminate it over the Web. It could also determine whether YouTube, by far the most popular video site, suffers from an original sin of rampant copyright violation before Google took over.
Ill-gotten rewards, destroyed e-mail?
While there are still questions as to how much money Google is or is not making from YouTube, there is little doubt that YouTube’s founders profited handsomely from selling their company less than two years after building the site. According to court records, YouTube founders Steve Chen, Chad Hurley, and Jawed Karim walked away with $334 million, $301 million, and $66 million, respectively.
According to Viacom, those were ill-gotten rewards. The three young men had already planned to look the other way, as far as copyright violations were concerned, court documents claim. Their intent was to create the online-video equivalent of Napster and then sell it. To do that, Viacom claims that the team sought ways “to avoid the copyright bastards.”
Viacom said in one e-mail that Chen urged associates to “concentrate all our efforts in building up our numbers as aggressively as we can through whatever tactics, however evil.”
Viacom suggests that it may not have been given the benefit of finding out the whole story at YouTube, whose managers did not turn over some e-mails belonging to Hurley. The reason Google gave for any missing correspondence was that Hurley’s e-mails were accidentally destroyed when his computer suffered a malfunction sometime before the Google acquisition. Viacom said, however, that it was able to retrieve some of Hurley’s e-mails from Karim.Those e-mails show that YouTube managers knew that employees uploaded unauthorized content and applauded such moves, Viacom claimed.
Google argues that Viacom has distorted and taken out of context many of the statements from YouTube’s e-mails while doing a sloppy cut-and-paste job on some of the YouTube e-mails. In one e-mail from Chen to Karim, it said, Viacom omitted the word “stop” from this passage: “In other news, Jawed, please stop putting stolen videos on the site.”
Google provides several e-mails showing that from the earliest days of YouTube’s existence, the founders sought to protect copyright. In one April 25, 2005, e-mail, Chen tells the other co-founders that videos would be rejected that violated one of the following rules: “video must be about you, must be appropriate for all audiences, cannot contain contact information, no copyrighted material.”
In an apparent attempt to underscore YouTube’s usefulness and to suggest that Viacom is being hypocritical, Google noted that Viacom continues to do business on YouTube.
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