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November 01, 2006

Details about the Google/YouTube Deal

Dare links to a fascinating post that sheds light on how big business can operate. 

It breaks down the gist of the Google/YouTube deal as an industry menaje a trois. YouTube gets bought and the founders make oodles.  Google sucks up this Internet icon.  The media companies that were about to go after YouTube get a pile of cash (none of which they have to pay out as royalties to the talent).  To provide air-cover for Google, the media companies sue YouTube competitors, and don't sue YouTube, to give it a big competitive boost in the marketplace (it's a nice advantage to be able to infringe on copyrights, risk free, for 6 months).  After that, it's assumed that Google will clamp down on the copyrighted material, which won't hurt them much because the competitors will either be quashed, or will have had to remove copyrighted material some time ago.

Brilliant. 

Do no evil.

Posted on November 1, 2006 at 12:48 PM | Permalink

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