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October 13, 2006 6:02 AM PDT

AOL's love-hate response to GooTube

by Margaret Kane
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Almost before the ink on the deal was dry, commentators were pointing out the copyright issues Google could be letting itself in for when it bought video-sharing site YouTube for $1.6 billion earlier this week.

AOL's response

And here they are: Time Warner chairman Dick Parsons told the Guardian that his company would pursue copyright complaints against Google, although he also said the company "would like to have our content displayed on these platforms."

"You can assume we're in negotiations with YouTube and that those negotiations will be kicked up to the Google level in the hope that we can get to some acceptable position," Parsons told the paper, adding that "if you let one thing ignore your rights as an owner it makes it much more difficult to defend those rights when the next guy comes along."

Bloggers complained that the company was just jealous; apparently Time Warner had rejected paying so much for YouTube.

Blog community response:

"Be careful, Dick, for a shot across the bow may bring a broadside from the other side. And the gorgeous fact of it is this: The other side isn't Google. It's everyone who uses Google (and now, YouTube.)"
--John Battelle's Searchblog

"That said, how long can it be before talented people give up on all the middle men (record companies, other distribution channels), and just go straight to MySpace and YouTube? If MySpace can sell your tracks through MySpace Music and YouTube can make sure your music videos get airtime, the role of the record company isn't so clear."
--Mashable

"Google may end up paying a lot more than $1.65 billion when this all plays out...and you can bet Time Warner and the rest won't be satisfied with payment in stock."
--Om Malik

Margaret is news editor for CNET News, based in the Boston bureau. She also oversees the CNET Blog Network. E-mail Margaret.
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