March 14, 2007 2:13 PM PDT
Copyright quagmire for Google and YouTube
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"Some of those implicate Google's core business much more squarely than this lawsuit does," Goldman said. "I can't even track all the patent cases they are involved in, but each one has the potential to be a much more serious risk to their business than this one does."
Predictably, Cuban, in a blog titled "You Go Viacom," said he hoped the suit was more than just a negotiating move. There is no "downside to Viacom to run this one out to the end. If they win the suit, they make their billion dollars, which given this lawsuit could take years, could grow to 10s of billions in damages if Gootube doesn't take any action to stop the ongoing infringing uploaders," Cuban wrote.
And if Viacom loses, he noted, it's basically back to where it is now, with a lot of YouTube users uploading its content without permission.
Analysts urge patience, as "Gootube" figures out how to play nice with the companies creating the content from which it is profiting.
"Was the acquisition a mistake? That's to be determined," said Van Baker, an analyst at Gartner. "This is one round in a 12-round battle."
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