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May 25th, 2007

Why YouTube is a losing video proposition

Posted by Donna Bogatin @ 12:25 pm

Categories: Google, Video, YouTube

Tags: YouTube Inc., Video, Donna Bogatin

The Google YouTube massive copyright infringement saga continunes, big time. 

BUT, the New Jersey Turnpike Authority has NOT “jumped on any “let’s sue YouTube  bandwagon,” as is cavalierly proclaimed: “YouTube just can’t seem to keep those lawsuits off its back.”

Why are the copyright infringement lawsuits “backing up” against YouTube? Because Google’s YouTube operations are in flagrant violation of copyright law, best business practices and, increasingly, common decency.

In the latest vs. YouTube matter: Plaintiff  NJTA alleges “YouTube did not try to prevent the very same video from being uploaded again by users immediately after it was purportedly removed.” The video in question is of a fatal NJ Turnpike car crash recorded by NJTA equipment.

Contrary to Google YouTube spin, and popular perception, Internet Kings Chad & Eric do NOT run YouTube as an open video book. Under Google’s guidance, YouTube carefully oversees what is, and is not, allowed on YouTube:

Subect to takedown: Material that is unlawful, obscene, defamatory, libelous, threatening, pornographic, harassing, hateful, racially or ethnically offensive, or encourages conduct that would be considered a criminal offense, give rise to civil liability, violate any law, or is otherwise inappropriate.

Despite, their incredulous public declarations, in fact, management of YouTube could readily implement a heavy duty copyright infrinfgement screening process to proactively stop unauthorized uploads of the content of others.

Our policy prohibits inappropriate content on YouTube. The users can flag content that they feel is inappropriate and once it is flagged, YouTube reviews the content and removes it from the system within minutes if it violates our Terms of Use.

This combined with our proprietary technology helps us to enforce the rules. We also disable the accounts of repeat offenders.

SEE: MySpace polices video copyright: Where is Google YouTube?

It is Google YouTube that wants to run their business via a risky reliance on DMCA cover, betting that legal and administrative costs will be overshadowed by the hefty gains realized from being uniquely positioned as seemingly not having to pay for the commercial use of others’ content.

As such, though, Google YouTube has set itself up as a losing proposition. No business is a viable one if it is built upon an expectation of non-stop product removal demands and high-ticket litigation.

While Google flaunts that it defies conventional business wisdom, it has many impending copyright infringement court dates that may end up defying the seeming Google invincibility.

The Google YouTube DMCA gamble is high-stakes and high-risk. How so?

Read my exculsive insider interview of lead YouTube class action prosecuting attorneys Proskaeur Rose: Google at Risk: YouTube class action lawsuit changes DMCA copyright game.

Donna Bogatin has been probing the business heart of the Internet for more than ten years. Don't miss a single post. Subscribe via Email or RSS. Got news? Send Donna your pitch. Find out more at Donna's Website: InsiderChatter.com. For disclosures on Donna's industry affiliations, click here.

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