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Legalbrief   |   your legal news hub Sunday 14 December 2025

YouTube deal raises legal issues

Search giant Google has bought the profitless but hugely popular video-sharing phenomenon YouTube for $1.65bn in stock.

YouTube had been coveted by virtually every big media and technology company, as they seek to tap into a generation of consumers who are viewing 100 million short videos on the site every day. The New York Times reports that Google is expected to try to make money from YouTube by integrating the site with its search technology and search-based advertising program. YouTube has also been compared to Napster, whose music-sharing service was eventually shut down after a series of lawsuits. But, CNET News reports, along with its purchase of YouTube, Google may have acquired a string of lawsuits alleging copyright infringement as well. As a struggling start-up YouTube did not have the type of bulging bank account that tends to attract lawsuits from copyright holders irked that their content is appearing on a commercial site to which anyone can contribute. This could now change given the far deeper pockets of Google. That could change now that YouTube is slated to become an arm of Google, which is already defending its share of lawsuits over intellectual property from book publishers, journalists, photographers and others. YouTube\'s - and therefore Google\'s - potential legal liability depends on how the courts interpret an area of copyright law that remains surprisingly unsettled. According to the Financial Times, analysts agree that YouTube could well have made itself a more attractive target; however, the report notes, Monday\'s announcement that YouTube had struck deals with CBS and Vivendi\'s Universal Music Group does provide evidence that some big studios see YouTube as a potential partner rather than an adversary. Full report in The New York Times Full CNET News report Full Financial Times report

Interestingly, a Light Reading report notes, YouTube could be saved from copyright infringement suits by sections of the Digital Millennium Copyright Act. Stanford law professor Mark Lemley said that Section 512 of the DMCA limits the liability of Internet sites in circumstances where they merely act as a data conduit and it protects sites that may unwittingly host pirated content. According to the US Copyright Office, in terms of Section 512, a service provider is eligible for the limitation on liability in instances where it does not have actual knowledge of the infringement, or, upon gaining knowledge of infringement, responds expeditiously to take the material down or block access to it. Full Light Reading report

In an effort to defend itself in a copyright lawsuit it faces over its library project, Google has issued subpoenas to some of its biggest competitors, including Yahoo, Microsoft and Amazon. TechTree.com reports that earlier, McGraw Hill and the Authors Guild, along with other publishers and authors, had slapped a copyright lawsuit against Google over its project to digitise libraries of four major US universities, parts of the New York Public Library, and the Oxford University libraries. These publishers allege that Google is violating copyrights in the course of completion of its library project, and that the only thing driving the company is economic self-interest. Full TechTree.com report

Meanwhile, a security outfit is claiming that Google\'s newly released source code search engine is servicing the interests of nefarious hackers well, reports E-Brief News. The new engine, released last week, is designed to make it easier for developers to find source code files online. However, according to The Inquirer, Fortify Software experts say that the engine can be used to search for software bugs, password information and proprietary code that shouldn\'t have been posted to the Net. Full report in The Inquirer

And, Google is also facing legal action in India. The Bombay High Court has directed the Maharashtra government to issue notice to Google for the alleged spread of hatred about India by its social network service, Orkut, reports The Times of India. The order was issued in response to a Public Interest Litigation. According to the petition, a picture of burning the national tricolour, bearing an anti-India message, was posted to Orkut and a community \'We Hate India\' created on the site. Full report in The Times of India