Does YouTube Make Google a Big Target For Copyright Suits?
Google's $1.65 billion purchase of video-sharing site YouTube catapults the search giant into the lead spot in the fast-growing online video market. It also creates a big, deep-pocketed target for aggrieved copyright owners.
While much of the content on YouTube consists of home-shot video, the site also contains copyright material that users upload without permission. Critics say Google could be exposing itself to liability for copyright violations. YouTube already faces one lawsuit related to this issue.
YouTube says it removes any videos with infringing content when notified and is rolling out a new system to automatically detect such material. YouTube and Google have also signed deals with some media and entertainment companies to license their content and head off any additional litigation.
Will YouTube turn Google into the biggest legal target on the Internet? Can Google use its heft to create a legitimate video-sharing service?
John Palfrey: Google is no stranger to copyright risk. Much to their credit, Google has not let a lack of precision in the copyright context to stop them from taking on major projects. The YouTube deal is no exception. As with Google News and the Libraries Project, the YouTube technology and service is going to make some people -- competitors and people elsewhere in the value chain alike -- somewhat unhappy.
That said, I don't think the risk is too great. YouTube is far different from Napster or Grokster. The core idea of YouTube is that a user creates a work on their own and then shares it online. The thrust of the business is not to encourage anyone to violate copyright, but rather to create works that they then can distribute online. The business model that YouTube features is a far cry from any of the early music file-sharing businesses. That difference in business model should make a big difference in terms of the copyright risk calculus.
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