30 October 2006
Eversheds Comments On Copyright Aspects Of YouTube And Google Deal
Tom Iverson, IP/media expert from Eversheds has written an interesting commentary on the copyright implications of the sale of YouTube. We set out Tom's comments below.
'This week's deal between YouTube and Google has brought to the attention of the public at large an already highly successful not-for-profit website which receives hits from tens of millions of web-users every day.
'The website allows people to post their favourite video clips on the Internet for the viewing pleasure of others. However, this has once again brought to a head the many legal issues that face a website of this nature. The problem, in short, is that many of the clips contain copyright material which has not been licensed by the copyright owner.
'As with peer-to-peer music sharing websites before, such as Napster, threats of litigation, particularly from the music industry heavyweights have never been far away. However, in a move to add legitimacy to the site, YouTube has recently signed licensing deals with music giants Universal Music Group, Sony BMG and Warner, and US television's CBS and NBC. This comes after threats from Universal to issue proceedings against YouTube for copyright infringement.
'Despite this, it is likely that litigation is far from being a distant threat to the new owners of YouTube. Smaller record labels and television networks from around the world are likely to seek similar protection in the form of licences, perhaps in a slightly different form. It is just not feasible for YouTube to do deals with every single copyright owner (from a time and cost perspective), but this may be a risk that Google is prepared to take, instead removing infringing clips (its current approach) or settling disputes out of court with disgruntled rights owners. Seeking a licence from thousands of rights owners must surely have an impact on a company which until now has not made any profits. As regards music, it may be that YouTube looks for a blanket licence from collecting societies representing the music industry, but to the extent that rights are not covered prior approval and a licence should be sought from the copyright owner.
'The danger for Google, after paying over £800m for YouTube is that it has inherited a legal time bomb. A successful action by one rights owner could lead to an avalanche of claims, given the many millions of clips downloaded from the website to date.
'Legal matters are further complicated by the global nature of the internet. Copyright is a jurisdictional right which varies from country to country. Further, in the UK the issue of performers' rights must also be considered, a right quite distinct from copyright and often overlooked.
'Overall, the licensing deals with major US TV networks and the world's largest music companies will certainly add legitimacy to YouTube, but are unlikely to draw a close to the rights infringement issues which have been in debate since the site began, just eighteen months ago, if the website continues in its current form.
For further information about Eversheds and its activities go to the firm's web site:
www.eversheds.com
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