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Viacom replays copyright claims in YouTube appeal

2010-12-04 08:09:31

By MICHAEL LIEDTKE, AP Technology Writer Michael Liedtke, Ap Technology Writer

Fri Dec 3, 5:46 pm ET

SAN FRANCISCO Viacom Inc., the owner of MTV, Comedy Central and Nickelodeon,

is trying to revive a federal lawsuit that seeks more than $1 billion in

damages from YouTube for showing tens of thousands of pirated video clips from

its shows.

The challenge filed Friday in a federal appeals court in New York had been

expected since a June ruling rebuffed Viacom's copyright infringement lawsuit

against YouTube and its owner, Google Inc.

Viacom's renewed effort is the latest twist in a closely watched legal battle

that has already dragged on for nearly four years. Oral argument on the appeal

probably won't happen until at least next summer.

The case revolves around the premise that YouTube became the world's leading

online video channel after its 2005 inception by turning a blind eye to the

rampant piracy on its site. Viacom argued that YouTube's founders realized the

attracted far more viewers than the amateur video of cute kittens and

angst-ridden teenagers.

Piracy was so prevalent at YouTube in its early years that Google branded the

video-sharing site as "a `rogue enabler' of content theft" before it bought the

service in 2006, according to internal documents unearthed in the lawsuit.

Underscoring its resolve, Viacom hired well-known attorney Theodore Olson to

steer the challenge in the 2nd U.S. Circuit Court of Appeals. He served as U.S.

solicitor general during the first term of President George W. Bush.

"We are appealing a very bad decision, which would have serious repercussions

for our economy and for the creative works for people who spend time trying to

enrich our lives," Olson said in an interview.

YouTube is confident the lower-court ruling that cleared the service will be

upheld. "We regret that Viacom continues to drag out this case," spokesman

Aaron Zamost said.

Viacom's appeal will hinge on its argument that YouTube doesn't qualify for the

protections allowed under a 12-year-old law that insulates Internet services

from copyright claims as long as they promptly remove illegal content after

being notified of a violation.

U.S. District Judge Louis Stanton concluded that YouTube had complied with the

Digital Millennium Copyright Act, absolving it of legal liability for the theft

of its users. He dismissed Viacom's lawsuit before a trial.

But Viacom contends YouTube doesn't fall under the law's "safe harbor"

provision because its founders Chad Hurley, Steve Chen and Jawed Karim

welcomed the piracy as a way of expanding its audience and increasing the

chances that they could get rich quick by selling the site to a larger company.

The founders cashed in when Google bought YouTube for $1.76 billion four years

ago.

None of them is still in leadership positions at YouTube, which now receives

about 35 hours of video every minute. The site relies on technology developed

by Google to identify and block unauthorized content.

Viacom's appeal cites evidence that YouTube could have done more to prevent

pirated clips from appearing on its site, but held off on imposing tougher

controls because the site's managers knew viewership would plunge without the

disquieting and disruptive," Olson wrote in Viacom's 61-page appeal.

But Internet service providers and free-speech groups believe more damage would

be done if YouTube loses its tussle with Viacom. They fear a ruling against

YouTube would undercut the digital copyright act and make it more difficult for

people to express themselves online, because service providers fearing lawsuits

would block controversial, but legal content.

Shares in New York-based Viacom fell 25 cents to close at $39.80, while shares

in Google, which is based in Mountain View, Calif., gained $1.18 to close at

$573.