I rag on Google a bit… here and there. (and probably the next post coming)
But I am very happy they exist. On their earnings call with investors yesterday they revealed they spent over 100 million dollars defending the Viacom lawsuit against YouTube for copyright infringement.
They could have easily settled for that much or less but they made a judge rule on it.
I can tell you first hand from experience litigation is not only incredibly expensive but annoyingly distracting.
I just want to say thank you to Google for standing up and fighting the fight which set a massive precedent going forward for user contributed content websites and the DMCA. If Google would have folded or not had a good defense and lost the internet would have drastically changed as we know it.
Many people have no idea how close this case came to changing the way a lot of us have to do business (and how much more it would cost us to do business).
So thanks Google.
About the author...
Jeremy Schoemaker – who has written 2473 posts on ShoeMoney.com.
Hi I am Jeremy Schoemaker and ShoeMoney.com is my blog. 99% of the post here are done by me but you will see others occasionally make guest posts. This blog is fun to write but for my day job I run several online companies.
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{ 80 comments… read them below or add one }
Really? Thanks Google? Did Tigh hijack the blog today?
We are just so fortunate. I think it’s hard to understand how much freedom this represents. Can you imagine? The internet as we know it would be modified to the point of obsolescence. It would be like going backwards.
Yes, the internet sure would be different if google didn’t defend this. I’m not sure how youtube and other sites could totally enforce this. Given the amount of content distributed on these sites every day. User generated content lives on
I wonder how much Viacom spent? And to think that Viacom is fighting back now – asking for an appeal or something. Pathetic.
It is perfect if youtube could be copyright infringement. That is what Google should do
This is a shameless waste of resources. And beyond that, the trickery, mudslinging, and back stabbing has tarnished the reputation of both companies. Terrible behavior for such well-established brands. Shame on them.
“For those of you who need a reminder… the judge ruled that “”online services like YouTube are protected when they work cooperatively with copyright holders to help them manage their rights online.”" So YT justs hosts the info. they are not obligated to see if the person posting has rights.
This was so huge I’m not even sure I understood it. But I do recall references to Internet access, e-mail, social, eBay, chat room and Web page hosting services. Just about everything was at stake! HUGE!
I don’t care if Google CEO Patrick Pichette describes cashing out $100 million in litigation fees as an “investment.” No matter what angle you look at it, they still lost precious resources, which ultimately can somehow affect the web giant’s progression. Stupid.
I bet Shawn Hogan @Digitalpoint isn’t to happy with Google right now they banned his adsence account because someone copied the source code of 1 of his advertisements and they won’t re-enable it.
Source: http://dp.ly/b5c
I guess Viacom overlooked a very simple yet essentially important axiom when they were trying to make their point to the judge: live by the DMCA, die by the DMCA. Imagine how many Lamborghini Gallardos I can buy with the amount they spent on litigation fees alone.
Seeing those staggering figures remind me that I still have to brush up on my Shoemoney system…Got any more video posts to share, Shoe?
$100 million is just small change for a big web conglomerate like Google. I mean how much do you think a company that influential in terms of Internet marketing earns daily? Just thinking about makes my head hurt.
One thing’s for sure, though. The lawyers always win. What do you think, Jeremy?
$100 million is still better than $1 billion.
I just can’t imagine how much the lawyers were paid. Per hour. Per day. Per week. Per month. The amount is just plainly insane.
Google and Viacom both lost, if you ask me. The real winners here are the lawyers. I am having a very bad feeling that I am in the wrong profession.
All that fuss and Viacom could not even prove damages. Tsk. Tsk.
A year ago, Google CFO Patrick Pichette predicted that YouTube, which he calls the company’s famously unprofitable video site, could be “very profitable” in the “not long, too long distant future.” Well, knowing that they spent $100 million to defend YT’s butt means the video site is prolly earning big bucks after all.
Pichette revealed that Google’s legal bills for the case amounted to $100 million — and that was before it went to trial. Isn’t it quite ironic that there is almost always talk about an impending economic recession but we allow these companies to spend profane amounts of money?
The case that won’t go away. I have a feeling that this is not the last of it. Viacom has vowed to appeal. What’s another million to them?
Who makes more money? Corporate attorneys or Affiliate Marketers?
Google fought the good fight.
Congrats! I agree, the Internet wod change drastically.
Here’s a toast to freedom!
After all the litigation dust has settled, there are still questions that remain to be answered: Did Pichette’s previously labeled “famously unprofitable video site” transformed into a money pit? Why are they too eager to spend a hundred million if YouTube is not generating money back?
This would have been a slap in the face for innovation. Who hasn’t jump started their web businesses by “borrowing” from others? Let’s face it. Everybody does it!
That would have been the last thing we needed in this crap economy.
Didn’t Veoh actually go bankrupt because of a similar case with United Media Group? Their case actually went to trial, and cost almost 10 million. Google had some luck, a sensible judge, and some fantastic lawyers on their side. Not to mention that the Viacom execs acted unethically.
I think it’s amazing that so many big companies sided with Google… FB, Yahoo, Ask, eBay… And they had to do that. They could have been next.
If this had passed, I have a few friends that would have had some major problems with their Facebook pages alone. LOL!
A hundred million bucks? What’s the hell is going on? Is spending money in a very obscene fashion the new fad?
That should be illegal. That’s a sick amount of money.
No doubt we will see more cases like this. I just hope the decisions continue to be in our favor.
Hey nice article on google but i got one more article on google have a look http://managementsaga.blogspot.com/2010/07/google-googlecom-king-of-internet.html
Great, Google is best company..I like their “google politic”
Totally agree, the court cases will keep coming. I admit, there probably is masses of copyright infringements on the net today. But as it has been proved, sites like You Tube are almost 100% user controlled, It just doesn’t have the resources to control content. Unfortunately, giants like Viacom will continue to try and change the way the internet is used until there is a model that benefits them.
Thanks for the post again Jeremy
Simon
i really want to be like you
There is an alternative to having an expensive litigation and that’s having a professional mediator mediating for both parties.
Ouch! That amount hurts.
Finance-wise, Google had a strong second quarter. Solid growth in their core business and very strong growth in their emerging businesses drove 24% revenue growth year over year. It clearly doesn’t care much about the money they spent on YouTube because the figures they are reaching these days mean triple or even quadruple that amount.
tho it’s clearly not about the $. they did what they had to do. Long live Google!
sometime i wonder how easily you shift gears, sometime back you were screwing Google as they are the most bad guy you ever met. and now you are praising.
Stumbled upon this post the other day. It basically features what you can buy with a million dollars. How much more with a hundred million? http://www.whatonemillionbuys.com/
A small price to pay for freedom.
As long as Google announces that the $100 million litigation price tag is well-spent, then there’s nothing spectacular to talk about in the first place. However, if the web titan admits that it spent the same amount to create a new internet meme that will dethrone the LOLCAT — that, my friend, is definitely going to be another story
Man, with that amount, you can easily buy yourself a small island somewhere in the Bahamas. Still, the excessive litigation amounts spell epic win for Google.
I think this is a good fight for Google. They want to set the precedent that sites like Youtube are protected from copyright as they are only hosting. Yes the $100 million could have been used for something else, and I am sure Google would agree, but in the end it was used to keep user generated content safe.
Just thinking aloud. If the $100 million Google declared spending on the case was used to aid the efforts to cap the BP leak fiasco, don’t you think it would have been over sooner?
I knew there was a catch when Pichette announced last year that YouTube was not performing impressively in terms of profit. Does that mean that the financial bigwigs at Google finally discovered the video site’s income-generating power by spending a whopping $100 million dollars?
I hadn’t heard of this case until now, although I had suspected there would be one. These lawsuits have so much power with each ruling, Sharing resources during these times will be a major contributor to improving our environmental situation. When will new systems be developed and implemented to create a sustainable Earth!.
Some very lucky lawyer is out counting his moolah. Almost makes me wish that I followed Dad’s advice of dropping computer engineering for pre-law. Nah! Just kidding!
Google made the right decision. 100 mill is really a big amount of money.
Let Freedom Ring.
I would have had to change my handle to James Is Working (At BK flipping Burgers)… or (As a Roadie)… panhandling…. juggling….
Is it just me or are there any more out there who think that some greedy lawyer is out enjoying his new Malibu mansion or super expensive car this minute?
Great info on the status of Google’s finances for the second quarter. definitely a must-read: http://apple-investor.com/blog/2010/07/is-youtube-still-a-money-pit-or-is-google-just-really-really-modest-mediamemo.html
Viacom will still be appealing the case. That means we’re still in for more mindless spending from these two.
If you have the money, the lawyers have the time.
Why didn’t Google employ in-house lawyers to save up on cash? Is this a war on frugality as well?
I think the point here is yes, it’s expensive. But it would be even more expensive if we lost the internet the way we know it today. This is a driving force in our economy right now. Google footed the bill for all of us. Now is a time to be grateful. I’m with Jeremy…. THANKS GOOGLE.
Awww, it’s a big hug fest on the blog today!
I’m glad they fought that fight.
I feel so close to all of you.
Just reading about this filthy spending makes me want to shower again.
A drop in the bucket for our friends at Google. THey come out looking like saints, and Viacom looks like a bunch of greedy, shady, corporate execs.
Hmmmm…. Wonder if we’ll see Viacom begging for a bail out at some point? Never say never. Look what happened to the auto industry…. and the banks, now that we’re on the topic.
Thinking back, I know why the Google CFO is mum on YT’s profitability. It’s possible, theoretically, that YouTube is indeed profitable, but Google doesn’t want to break out the numbers for the unit because doing so might shed too much light on the rest of the company’s business. If so, then we may never know if the world’s biggest video site moves from money pit to money maker.
so you mean shoe when you sue someone you dont really benefit that much financially?or even lose money?
Can you imagine what would have happened if that had passed? I can imagine sites being brought down to their knees across the globe. Fiasco!
It is perfect if youtube could be copyright infringement. That is what Google should do
I agree 100% Google is a powerhouse and any change they endure will affect all of us in some way shape or form, weather anyone thinks so or not.
I have seen YouTube remove a lot of audio from videos because it is breaking copywrite laws. Not sure what took so long but within the past 3 months it has become very common by them.
No need to thank Google, they did it out of their own self interest. Just so happens we benefit.
Jeremy, are you still making money with adsense? Just looking to diversify income with adsense.
I hadn’t heard of this case until now, although I had suspected there would be one. These lawsuits have so much power with each ruling, Sharing resources during these times will be a major contributor to improving our environmental situation. When will new systems be developed and implemented to create a sustainable Earth!. Btw love your blog, it has helped me so much.
It is NOT a victory for “Freedom” as so many think above.
How is copyright violations good for freedom? Are you dense, or do you not believe that artists, musicians, writers, etc. should be paid in the future?
Ya, I’m still a little sour at Google for taking away my page rank for some unknown reason.
Thanks For Posted
I am sure glad Google won. A lot of people complain of how unfair the Google SERPs are put in the end they do the right thing.
Yes, Thanks Google!
again. thx u google. everybody wants to talk shit. fuck everybody. rock on.
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