When a lawsuit proceeds for seven years, anticipation steadily builds as we await the substance of the eventual resolution. In the seven-year case of Google® versus Viacom® we finally have a much-anticipated resolution between the two tech giants. It’s a significant conclusion to a wide-ranging copyright law issue.
Viacom® brought a $1 billion lawsuit against YouTube® and others in 2007. The case concerned unauthorized uploads of video clips to the YouTube® website. Eventually Viacom® claimed that Google®, which now owns YouTube®, impermissibly broadcasted 79,000 copyrighted videos between 2005 and 2008. For example, Viacom® claimed that Google® illegally posted clips of “The Daily Show with John Stewart” on YouTube®. Viacom® argued that YouTube® collected profits from the illegal clips while Google® claimed that by removing unauthorized files when notified of alleged infringements, it was abiding by established copyright law.
According to Google®, its activities fit squarely within the safe harbor provision of the Digital Millennium Copyright Act. Last April, Judge Louis Stanton of the Southern District of New York agreed. Judge Stanton rejected Viacom®’s claims and ruled in favor of YouTube® as to whether YouTube® owed monetary damages to Viacom®. Stating that YouTube® only had to remove videos from its website once copyright holders issued a corresponding demand, Judge Stanton ruled that YouTube® did not have to search its own website for impermissibly-posted videos. In addition, Judge Stanton recognized that it wouldn’t be feasible for YouTube® to scour its content for potential infringements, given the fact users were uploading video content at a rate of more than 24 hours of viewing time per minute. Moreover, Judge Stanton ruled that YouTube® could not be tied to infringing activity because it did not interact tightly enough with its users. However, in 2012 the United States Court of Appeals for the Second Circuit stated that a reasonable jury could indeed find that YouTube® was aware of specific infringing activity. The back-and-forth nature of the legal rulings likely encouraged both parties to negotiate a settlement which was reached in March of 2014.
The parties did not disclose the terms of their settlement, but a source close to the case confirmed that no money changed hands. The wide-ranging effects of this settlement could be felt by the copyright community for years. According to a statement by the two parties, “[t]his settlement reflects the growing collaborative dialogue between our two companies on important opportunities, and we look forward to working more closely together.” Viacom® and Google® may continue to collaborate by advertising and developing technology together. In addition, CNNMoney® reports that the two giants may deliver a bundle of cable channels on the Internet as part of a concept known as “over the top TV.” These developments should bring more enjoyable entertainment to millions of users.
Viacom® may appeal some of their losses in court in an attempt to recoup some ground. However, the newfound collaboration between Viacom® and Google® should ease tension between the two parties. Costs of litigation can add up significantly over seven years, and while Google® appears to have gotten the upper hand by avoiding a $1 billion loss, both Viacom® and Google® can leave the bargaining table satisfied. The rest of us can toast to that.
(Neeraj Joshi)