The second quarter has come to an end for quite some time now and almost all companies are reviewing their performance over the last quarter. Google did remarkably good in the quarter despite the tensions that it has prevailing with the Chinese government on the censor of some search results in China. The CFO of Google came up with quite an interesting fact in the conference call where they were discussing Google’s Second Quarter Earnings.
Background of the lawsuit:
Viacom filed a lawsuit against Google’s owned YouTube for the unauthorized clips uploading on the video channel without consent with the company. The lawsuit was a suing case with $1 billion as the penalty. Both the companies had many sessions inside and outside the court by now until the decision was made. Google has been maintaining the shelter that DMCA offered it. DMCA is the Digital Millennium Copyright Act that set Google not liable for the issue yet it did demand Google to put the videos off the video channel once reported by the copyright owner. YouTube removed those videos the moment it was reported to them setting them innocent in the whole case.
There were around 160,000 clips reported to have been uploaded on the channel through different resources out of which 100,000 were pulled down the moment it was brought into YouTube’s notice. The $1 billion figure seemed low as well as there were around 1.5 billion views and there is usually a penalty of $150,000 per infringement that takes place. Viacom claimed it to be a “Massive international copyright infringement” accusing Google of making the best out of the efforts without permission and therefore destroying enormous values of the company.
Google’s spending on the Case:
The CFO stated that Google has spent $100 million case defending YouTube against the lawsuit that Viacom has filed of $1billion. The lawsuit has been finally sorted out when the court has made a decision in favor of Google. The summary was justifying Google and the lawsuit was thrown out. The victory is well celebrated even when it was not a cheap one. Spending 100 million on a lawsuit sounds quite interesting and will set many of us think on the number of lawyers who had been working on this case to defend YouTube for this much money.
Google will certainly not feel any difference as it has just dropped a bucket out of the $30 billion reservoirs it has in the banks and other financial institutions. In addition, Google saved itself from the 1 Billion lawsuits. In other words Google saved itself to lose another $900 million. The most interesting question that arises is; if Google has spent $100 million on the lawsuit, what would have been the spending of Viacom to keep the case in court for this long even when the DMCA gave complete shelter to YouTube for the infringement.