James Delahunty
15 Sep 2009 2:03
A federal judge has dismissed a 2007 lawsuit brought against online video site Veoh Networks Inc. by Universal Music Group. The lawsuit alleged that Veoh was aiding and abetting copyright infringement on its video service. However, U.S. District Judge Howard Matz on Friday disagreed with Universal Music Group and found that Veoh was taking reasonable steps to prevent and take down infringing videos uploaded by users.
Veoh CEO Dmitry Shapiro welcomes the judge's decision as a "great victory". The lawsuit costs the company millions of dollars in defense fees. "We've been dragging a giant boulder on a chain. This frees us," Shapiro said. "This lawsuit was simply Universal's attempt to prevent innovation and shut down the company."
Universal said it will appeal the decision to the 9th U.S. Circuit Court of Appeals. "The balance between copyright holders and technology that Congress sought in enacting the DMCA has been upended by this decision," Universal said in a statement. Settlement talks between the two over the past couple of years have always amounted to nothing.
"We never once had a business conversation with Universal Music Group. It was always about litigation," said Joshua Metzger, Veoh's general counsel and a senior vice president. Veoh currently boasts licensing deals with Viacom Inc., Time Warner Inc., the Walt Disney Co., and Sony.