Wednesday, November 15, 2006

Legal Provisions for Gtube

Reports that Google have set aside $200m of the acquisition price for Youtube to cover potential legal proceedings follow the regulatory revelation that Google themselves are being sued over content on Google Video. With US court and the legal system heavily predisposed towards protecting copyright thanks to decades of lobbying by the major content owners, this figure seems rather low. Unless of course Google is successful in its current charm offensive as it does the rounds of the studios. I see the biggest threat, however, as coming from sports federations, who have more to protect and much to gain in their complex web of rights.

The FT report that Youtube have gone through only $11m of VC money and then $15m of Google cash to date. This doesn't seem to stack up with the $2m a month of bandwidth and hosting costs they're reportedly being paying Limelight.

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