Wall Street Wonderland

The good, the bad and the unspeakably ugly and everything in between, so help us!

Friday, March 16, 2007

The Conspiracy against Google

Americans in general love a good conspiracy. Google is faced with two lawsuits in as many weeks, from two different companies - both for massive copyright infringement; doesn't this sound like a conspiracy?

So who are the two companies? Microsoft, (known for its big heart) on behalf of a group of publishers, is suing Google for scanning hardcopy material. Viacom, the second "suer", has an actual reason for the lawsuit. Viacom is the holding company of MTV, VH1 and Nickelodeon. Viacom is suing YouTube, which Google bought last year for $1.6bn, for hosting copyright material that was broadcast on some of the Viacom media networks.

YouTube has been under fire from many other media networks for hosting copyright protected content, but Viacom is the first to sue.

The stinging attack launched by Microsoft has to do with the fact that Google is scanning hardcopy documents by the truck load, some of which is not being done with the permission of the content owners. Thomas Rubin, Microsoft chief legal advisor, says in a statement published on the Microsoft website: "In my view, Google has chosen the wrong path for the longer term, because it systematically violates copyright and deprives authors and publishers of an important avenue for monetizing their works. In doing so, it undermines critical incentives to create."

In the same speech he states that Microsoft has been in the process of scanning books themselves with the knowledge and permission of the content owners. Google has been accused of not creating anything and is making money off other people's work and innovation. In my view this lawsuit is nothing but a publicity stunt from Microsoft to promote the Live Book Search service, and gain more publishing support.

Viacom, on the other hand, is suing YouTube for $1bn in damages, claiming copyright breech by allowing users to share more than 150 000 unauthorised video clips of Viacom's programs. This is a classic case of old media (broadcasting in the traditional way) and new media (internet broadcasting)

This might not be a conspiracy yet, just Google hitting a patch of bad luck. But there are two possibilities on why the Viacom, Microsoft cases - brought against Google so close after each other - can be seen as conspiracy. Firstly, Viacom knew that Google will have its hands full with the Microsoft suit and what better time to launch its own attack.

Secondly, Google's purchase of YouTube puts the latter in the money, an opportunity for Viacom to cash in. It was only a matter of time before some large media company bought YouTube, and Viacom sit back and waited.

Let's just hope Google has the foundation in place to survive this attack.

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-1522-2090_2084665

1 Comments:

At 9:43 AM, Anonymous Anonymous said...

This isn't a conspiracy, and it isn't a patch of bad luck. it is the obvious, expectede result of years of cavalier attitudes toward the rights of content owners.

If you piss off enough people, sooner or later one of them is going to come back and hit you. Or three. (You forgot Mark Cuban's suit. And, I expect a lot more.)

Google (and especially YouTube) has to realize that this bonanaza of stolen videos is not good for anyone, and definitely not good if you want to establish legitimate, "over the top" media access. Piracy makes content owners web-fearful. When it is curbed, they will come running to the web.

Luckily, something like Joost is going to blow YouTube away, and the content owners will all sign up for it.

Joslyn

 

Post a Comment

<< Home