March 16, 2007 11:00 AM PDT

Week in review: YouTube honeymoon over for Google

Six months after Google announced it would spend $1.65 billion to buy YouTube, many are wondering if the video-sharing site's legal headaches outweigh its benefits.

On Tuesday, Viacom filed a $1 billion copyright lawsuit against YouTube and Google, its parent company. The lawsuit could end with YouTube making peace with Viacom, and in doing so find a way to mesh and monetize copyright content alongside user-generated content.

But it could also prove that perhaps Google's YouTube acquisition was a mistake, as Mark Cuban famously forecast on his blog. Many analysts predicted potential legal problems for YouTube, in lieu of the Napster legal decision. But Cuban, the owner of the Dallas Mavericks, chairman of cable network HDNet, and the guy who sold Broadcast.com to Yahoo for $5 billion in 1999, offered the now memorable, plain-spoken line "only a moron would buy YouTube."

Whether YouTube suffers the same fate as Napster may depend on the wording of the Digital Millennium Copyright Act (DMCA), which made its appearance in the U.S. Congress in July 1997 before video-sharing Web sites were envisioned.

It was drafted when Web site hosting was a more static affair, and doesn't clearly address YouTube's unique situation. Napster invoked Section 512, unsuccessfully, in its own legal defense regarding music-sharing.

Section 512's so-called safe harbor of the DMCA generally lets hosting companies off the hook for legal liability, as long as they don't turn a blind eye to copyright infringement and remove infringing material when notified.

YouTube meets the second requirement through a formal posted policy and by prohibiting the posting of unauthorized video uploads more than 10 minutes in length. It's unclear whether or not the court will agree with Viacom's assertion that YouTube has failed to meet the first requirement.

Viacom is expected to argue that Section 512 doesn't protect YouTube because the safe harbor applies only if a Web site does not financially benefit directly from the alleged infringing work.

Attorneys for Google said Section 512 provides more than an ample shield.

Evidence from a decade ago suggests that politicians never meant to completely immunize a service like YouTube, which could survive without copyright infringement but nevertheless has become much more popular because of it.

While some CNET News.com readers said that Viacom is making a business mistake, others wondered what took so long for a copyright lawsuit to get here.

"I am in favor of user generated content but then there has got to be better way of monitoring and sharing it without copyright problems," one reader wrote to the News.com Talkback forum.

Tech meets art meets music at SXSWi
Keynote speakers at this year's South by Southwest Interactive Festival (SXSWi) in Austin, Texas, now in its 14th year, included two hackers, a veteran journalist, a creator of virtual worlds, and a director.

SXSWi attendees found their cell phones not working, and for once, it wasn't their carrier's fault.

As part of their demonstration on a new Golden Age of hacking, Make magazine senior editor Phil Torrone and do-it-yourself electronics pioneer Limor Fried, jammed the audience's cell phone signals during their keynote speech at SXSWi. In addition to the jamming technology, Torrone and Fried discussed and illustrated several of their favorite DIY hardware hacks

Dan Rather, the longtime news anchor who had his career prematurely shortened after bloggers drew attention to a reporting error on President Bush's National Guard service, was also a keynote speaker at SXSWi.

Rather, who has revived his career working with Internet entrepreneur Mark Cuban's HDNet, touched on the state of the Internet as a way to get information and news to people. The born-again cyberjournalist offered his views on how journalism is evolving in the digital era and the challenges facing his profession.

Filmmaker Richard Linklater, known for his day-in-the-life-of films, discussed how he has snuck in "art" despite the confines of tight-fisted production houses.

And Will Wright, the renowned game designer of The Sims and SimCity fame, showed off Electronic Arts' forthcoming Spore. Wright explained that the game--which is expected sometime in the second half of 2007--is akin to a very elaborate Montessori toy. He said that because of the scientific theories it is based on and because the game is designed, to some extent, to predict what would make the game world more interesting, it is in fact an elaborate philosophy tool.

Wright showed how artificial societies in Spore can be quickly turned into representations of human behavior, including the ability to change climates. He showed how quickly raising the temperature of an area on a planet, could make seas recede or even disappear and joked that his game could be a sequel to the Al Gore documentary, An Inconvenient Truth.

One of the most notable debuts at SXSWi was Slacker, a new Web music service and portable music player from the San Diego-based company of the same name.

Slacker combines a standard portable music player, that supports MP3, WMA, WMV and MPEG-4 files, with Wi-Fi and a satellite radio service offering more than 10,000 custom music channels users can tailor to their tastes. The end result is essentially portable radio with video instead of audio ads--or, for a price, no ads at all--with content that refreshes automatically based on personal preference.

CONTINUED: Microsoft gets a voice…
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Viacom Inc., YouTube, Napster Inc., Week in review, lawsuit

3 comments

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I know google has a lot of money but..
Youtube is a sinking ship. Youtube is too big. It will have to move
further and further from copyright infringement. Once it does most
of it's users will go elsewhere.

hmm but what else to do with 1650 million dollars....
Posted by doodr9 (36 comments )
Reply Link Flag
$$$$ is the reason with VIACOM
when YouTube was a non entity there were no issues with anyone or anybody...now that Google owns YouTube and is loaded (so to speak)...it's
a big issue now...

just wait for the individuals to follow suit...

shame on viacom...

later...
Posted by oceanview_1 (14 comments )
Link Flag
YouTube is no Napster
YouTube will not face the same demise as Napster. There is lot of original content in YouTube from "Death Threat Dramas" to "Complete Comedy". So YouTube is the home of this huge reality shows. Once YouTube provides enough connectivity or quality where you can hook-up to you tube via TV (like IP TV way.. not connecting from your computer), its the future.

YouTube has too much original content than Napster ever had, and there is also change in attitude (a-bit) on the content industry, see their partnership with BitTorrent.

ViaCom is bitter over Google not making concessions, they want to use this law-suit as an arm-twisting tactics, nothing more. I would be the least surprised individual if there is a off-court settlement on this case.
Posted by YankeePoodle (785 comments )
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