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Viacom replays copyright claims in YouTube appeal

VIACOM Inc., the owner of MTV, Comedy Central and Nickelodeon, is trying to revive a federal lawsuit that seeks more than US$1 billion in damages from YouTube for showing tens of thousands of pirated video clips from its shows.

The challenge filed yesterday in a federal appeals court in New York had been expected since a June ruling rebuffed Viacom's copyright infringement lawsuit against YouTube and its owner, Google Inc.

Viacom's renewed effort is the latest twist in a closely watched legal battle that has already dragged on for nearly four years. Oral argument on the appeal probably won't happen until at least next summer.

The case revolves around the premise that YouTube became the world's leading online video channel after its 2005 inception by turning a blind eye to the rampant piracy on its site. Viacom argued that YouTube's founders realized the copyright-protected clips from shows such as Viacom's "The Daily Show" attracted far more viewers than the amateur video of cute kittens and angst-ridden teenagers.

Piracy was so prevalent at YouTube in its early years that Google branded the video-sharing site as "a 'rogue enabler' of content theft" before it bought the service in 2006, according to internal documents unearthed in the lawsuit.

Underscoring its resolve, Viacom hired well-known attorney Theodore Olson to steer the challenge in the 2nd US Circuit Court of Appeals. He served as US solicitor general during the first term of President George W. Bush.

"We are appealing a very bad decision, which would have serious repercussions for our economy and for the creative works for people who spend time trying to enrich our lives," Olson said in an interview.

YouTube is confident the lower-court ruling that cleared the service will be upheld. "We regret that Viacom continues to drag out this case," spokesman Aaron Zamost said.

Viacom's appeal will hinge on its argument that YouTube doesn't qualify for the protections allowed under a 12-year-old law that insulates Internet services from copyright claims as long as they promptly remove illegal content after being notified of a violation.

US District Judge Louis Stanton concluded that YouTube had complied with the Digital Millennium Copyright Act, absolving it of legal liability for the theft of its users. He dismissed Viacom's lawsuit before a trial.
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