Google does have a YouTube fund!

November 15, 2006

So the rumours originally started on Mark Cubans blog have proved to be true, even though Eric Schmidt denied it at first, Google has put aside some funds to cover any potential copyright lawsuits brought on by the YouTube deal.

Googla say they are witholding 12.5% of the stock they owe to YouTube for one year to cover any potential losses, that amounts to approx $200m. The stock funds have been stashed away in an escrow account for that period.

Copyrighted material is still being pulled down very quickly by YouTube so they are dealing with any issues as proactively as they possibly can, but it’s still looking likely that a multitude of lawsuits will arise. However, as long as YouTube responds promptly to any complaints any lawsuits could evaporate as some protection is offered to YouTube under the Digital Millennium Copyright Act.

In other YouTube related news apparently Mark Cuban has expressed an interest in buying a news organization that has filed a lawsuit against the video-sharing company. Cuban is (allegedly) eyeing the Los Angeles News Service, a small television news operation based in LA. The company alleged in a lawsuit last July that YouTube encouraged people to violate copyright law. The reason for this interest? No, not some conspiracy to get at Google I’m afraid. Rather the fact that the Los Angeles News Service broadcasts news in HD and Cuban happens to have co-founded HDNet the first TV network broadcasting exclusively in high definition.

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