Video-sharing site Veoh wins suit against Universal
Veoh, a video-sharing web site that is a perennial punching bag for entertainment studios prosecuting copyright violations, has emerged victorious from the lawsuit filed against it by Universal Music Group two years ago. According to the judge in the case, Veoh is protected under the Digital Millennium Copyright Act.
The ruling — which states that internet service providers can’t be held liable for their users’ illegal activity — could wield significant influence over other online video sites, particularly YouTube, which has been embroiled in a two-year $1 billion battle with Viacom over similar issues (though in a different district). Ironically, it won’t do much for Veoh, which has been in decline for the last couple years since Hulu and TV network-operated video sites have risen to the fore.
The YouTube case will probably go to trial sometime next year. Analysts and industry experts have been following it closely, guessing that it would be the landmark suit to set the precedents already born out of the Veoh ruling.
No doubt Universal will appeal. It’s already released a statement that today’s summary judgment actually flies in the face DMCA, and the judge’s ruling is nonbinding. Counter to this logic, Judge Howartd Matz says Veoh is protected under the so-called “Safe Harbor” provision of the act because it was unaware that copyrighted material was posted to the site — at least Universal can’t prove otherwise — and that Veoh removed content that it knew was illegal as soon as it found out.
Veoh — which differentiated itself by blending user and professionally-generated content — is backed by Time Warner and Goldman Sachs. While it hasn’t achieved profitability yet, it says it plans to hit the black by second quarter of next year. At the same time, it has reportedly been hunting for a buyer.
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About the Author, Camille Ricketts
Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.