Andre Yoskowitz
8 Feb 2009 18:21
Venture capitalists invested in the popular video sharing website Veoh can rest easy following yesterday's decision that investors in the site can not be held liable in Universal Music Group's current lawsuit against the company.
Veoh allows for user-submitted content, just like its bigger competitor YouTube, but also shows premium content from Hulu.
Universal, in its lawsuit, claims that Veoh has "built its business on the back of others' intellectual property," and that massive copyright infringement occurs daily on the site. Veoh, just as most video-sharing site do, does not restrict what is uploaded but does take down videos at the request of others, including the record labels and film studios.
The decision, by Judge A. Howard Metz noted that the investors can not be liable, as they simply provided money and did not encourage copyright infringement.