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Google Spent $100M Defending Viacom Lawsuit

I Don't Believe in Imaginary Property writes "Lawsuits are never cheap, even if you're on the winning side. But not many cost as much as Viacom's lawsuit against Google. The search giant won before trial, and even so Google spent $100 million defending themselves. Incidentally, Viacom is appealing the ruling, so it's not even over yet. Perhaps it's no wonder our rights are vanishing online when it takes $100M to protect just one of them."

34 of 153 comments (clear)

  1. A possible fix: by Anonymous Coward · · Score: 5, Insightful

    On all matters regarding intellectual properties, only public defenders may represent both parties.

    And move to a non-profit court system. Some jurisdictions figured out they could attract dollars by being attractive venues for lawsuits.

    1. Re:A possible fix: by Theaetetus · · Score: 4, Interesting

      And move to a non-profit court system. Some jurisdictions figured out they could attract dollars by being attractive venues for lawsuits.

      That has nothing to do with the court system - it actually loses money on each case, whether patent, criminal, or civil. However, the city of Marshall, Texas makes a lot of money on patent suits, with lots of expensive hotels and restaurants for out of towners. Are you going to suggest banning capitalism in towns with courthouses? Obviously not.
      Forum shopping is bad for many reasons, but not the one you suggest.

    2. Re:A possible fix: by h4rr4r · · Score: 2, Interesting

      A simple solution would be to not require people to travel for these sort of court matters. Everything can be done by a teleconference between the parties, each at a courthouse local to them.

    3. Re:A possible fix: by Anonymous Coward · · Score: 3, Insightful

      The cost is primarily the hourly rate for lawyers, not travel expenses. This case barely even saw the inside of a courtroom. Teleconference maybe could have saved a few thousand, maybe even a few hundred thousand, but not any significant percentage.

    4. Re:A possible fix: by AvitarX · · Score: 3, Insightful

      It could have taken the profitability for the town though.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    5. Re:A possible fix: by Theaetetus · · Score: 2, Interesting

      And is the jury at a third courthouse?

      Do they have a jury for the pre-trial? If these are settled before they go to trial, then there should be no jury involved.

      So, the suggestion is that they should do pre-trial matters via teleconference? They already do. Not unusual.

      Plus, really, do you think the majority, or even a significant amount, of the $100 million cost was the airfare and hotels? Really?

    6. Re:A possible fix: by nine-times · · Score: 3, Insightful

      Better solution: make better laws, appoint better judges.

      I kind of hate when you get a problem that stems from people doing stupid things and everyone runs around trying to figure out how to rejigger the system to make stupid things impossible. There is no systematic way to stop stupid greedy corrupt people from wreaking havoc. You can come up with systems that will diminish the amount of damage any one stupid greedy corrupt person can do, but that's about it. If you let stupid greedy corrupt people stay in charge, they'll still wreak havoc.

    7. Re:A possible fix: by gandhi_2 · · Score: 2, Funny

      Your invention of the "ice pick in the eye over the internet" would just land you in court against this guy.

    8. Re:A possible fix: by iamhassi · · Score: 4, Interesting

      "Better solution: make better laws, appoint better judges."

      It's not the laws, this was a lawsuit that didn't even enter a courtroom. I can sue anyone for anything: if I knew your name and address I could sue you right now for... oh, let's say slander and you'd have to shell out $$$ or be found guilty. Oh sure you could counter sue saying the lawsuit has no basis and might get your money back, but you'd still have to shell out the $$$ first just to go to court.

      Legal system is no better: without any proof or evidence at all I could accuse anyone of assault and the police will go arrest them and put them in jail and maybe the next day they could talk to a judge and get out of jail after paying thousands in bail. That's what this women did. She sent fake harassing text messages to herself and her ex-boyfriend was arrested three times before the police finally investigated to see that all the text messages were sent close to where the woman worked. Each time he was arrested he had to pay thousands in bail money and now has a police record for harassment that he has to try and clear up.

      The US legal system is horrible.

      --
      my karma will be here long after I'm gone
    9. Re:A possible fix: by interkin3tic · · Score: 2, Interesting

      Are you going to suggest banning capitalism in towns with courthouses?

      If it will allow me to continue watching videos of cats doing cute things, people falling down in funny ways, breakdancing, and all the other silly but entertaining things I see on youtube, then I'll suggest that yes, communism socialism anarchy or whatever in Marshall Texas is just fine for me personally. Cede it to North Korea for all I care, just don't let Viacom win.

      (I should explicitly mention that I am not a lawyer, not from Texas, and am not serious)

    10. Re:A possible fix: by berzerke · · Score: 2, Informative

      ...She sent fake harassing text messages to herself and her ex-boyfriend was arrested three times before the police finally investigated to see that all the text messages were sent close to where the woman worked...

      Actually, if you RTFA carefully, you'll see it was the victims that did the investigating first, and then took their findings to the police, who then ran with it.

    11. Re:A possible fix: by shentino · · Score: 2, Insightful

      No, the US legal system is wonderful...if you happen to be a lawyer.

      And guess the number one profession of pre-election representatives to be?

  2. Other interesting monies by erroneus · · Score: 4, Insightful

    Perhaps the data is published somewhere or is simply waiting to be compiled, but I would like to know how much was spent lobbying for the DMCA in the first place. This figure can then be compared with the money spent defending. Those numbers could then be used to show how much money was wasted on this and similar laws that offers negative net benefit to those whose copyrights are being "protected."

    As we know, belief trumps fact. It has been widely believed to be true until studies have proven it to be true. So perhaps such a study would be an exercise in futility, but perhaps before MORE stupid laws and treaties are put into place, these sorts of facts need to come out into the open to show the world what is really going on and who is really benefiting. Turns out that the individual people aren't benefiting (we already knew that) but the parties allegedly being defended aren't benefiting either. The courts systems are being burdened and tied up as well. It's all a tremendous waste and the only beneficiaries are the lawyers behind it all.

    1. Re:Other interesting monies by MobyDisk · · Score: 3, Funny

      As we know, belief trumps fact./quote>
      Is that a fact?

      It has been widely believed to be true until studies have proven it to be true

      Okay, I'll believe it then.

  3. Ask Phil Zimmerman by GPLDAN · · Score: 5, Interesting

    He spent every cent he had, and went into deep deep debt, trying to keep out of jail for a prosecution orchestrated by RSA as a political favor payback by the US government.

    1. Re:Ask Phil Zimmerman by Shakrai · · Score: 3, Insightful

      He should have used the 2nd amendment instead ;)

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    2. Re:Ask Phil Zimmerman by Hatta · · Score: 2, Insightful

      Freedom's just another word for nothing left to lose.

      --
      Give me Classic Slashdot or give me death!
  4. McLibel by PIPBoy3000 · · Score: 3, Informative

    It's not always expensive to litigate. The classic example is the one against McDonald's.

  5. What about Viacom? by hannson · · Score: 4, Interesting

    I'm wondering how much Viacom spent on that lawsuit.

  6. a legion of lawyers by circletimessquare · · Score: 3, Insightful

    litigating laws that should not exist in the first place

    a kind parasitism, that we are all paying for

    legal cruft, created by lawyers, in the service of paying lawyers and keeping them busy, but adding nothing whatsoever to society or the common good, serving to do nothing but waste other people's money and time and keep a bunch of pointless people buried under paperwork

    what do these people create?

    i'd like one of these lawyers in cases as pathetic and pointless as this to actually try to defend their useless existence

    how can they wake up in the morning and not put a shotgun in their mouths, so utterly without any redeeming quality is their useless existence?

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:a legion of lawyers by russotto · · Score: 2, Insightful

      They are keeping society in peace. With no other way to solve their conflicts, companies or particulars will try to end their problems with violence, just like mobsters do. Ok, you don't want to pay me? BAM. I invented this product, not you... BAM.

      Unfortunately, we've reached the point where the legal system is so inaccessible (due both to cost and time) that it is not practical as a way to solve problems either. Its legitimacy is basically inertia; right now, if someone screws you, in nearly every case you just have to take it and move on, as suing will cost you more than it is worth. If someone with a large bankroll sues you (or even threatens to, or even could possibly do so if you're contemplating something they might object to), in nearly every case you just have to give in, as defending it will cost more than it is worth. Thus there ain't no justice. Eventually people will start realizing this and violence over such disputes will go on the rise.

  7. Re:Legal ridiculousness by Beardo+the+Bearded · · Score: 4, Informative

    Sometimes, yes.

    I'm an Engineer. It took me 5 years of University (co-op program) and six years of EIT time before I became a Pro. I would charge out time at about $200 an hour, which is roughly the same as other Pros. (This isn't what I get paid at work but then I get other benefits like steady work, legal resources and insurance, and a great environment.)

    Lawyers get a degree before they go to law school and then have to spend years articling before they can do their bar thing. (What? I'm not a lawyer. My lawyer's a lawyer.) Why should they charge a cheap rate for professional services? Law is a difficult topic and requires a lot of training. It's not like on Law and Order or Ally MacBeal where it's just talking. Most of it is research, practice, and training.

    Loser pay, though, that's the way to go. They do it up here.

    --

    ---
    ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
  8. Repay? by b4upoo · · Score: 2, Informative

    One would assume that Viacom will be required to pay Google's defense fees. And a nice counter suit is always a possibility.
                            Florida has an answer to appeals trials. One is required to post the sum awarded by the lower court as well as a hefty fee to appear before an appeal court. Since it takes three or four years to get to trial as a rule the lost interest on the money as well as the build up of ongoing legal fees generally rules out any hope of an appeal trial giving relief. Then just to put the frosting on the cake the superior court often rules that the case must be kicked down to the first level and decided from scratch all over again. Then it takes another year to get back to court and get a ruling and there is no guarantee that the case will not be appealed a second time. This turns into a case lasting for fifteen years with expenses so great that the person fighting the uphill side of the battle will drown before it is over.

    1. Re: Repay? by dachshund · · Score: 4, Insightful

      Florida has an answer to appeals trials. One is required to post the sum awarded by the lower court as well as a hefty fee to appear before an appeal court. Since it takes three or four years to get to trial as a rule the lost interest on the money as well as the build up of ongoing legal fees generally rules out any hope of an appeal trial giving relief. Then just to put the frosting on the cake the superior court often rules that the case must be kicked down to the first level and decided from scratch all over again. Then it takes another year to get back to court and get a ruling and there is no guarantee that the case will not be appealed a second time. This turns into a case lasting for fifteen years with expenses so great that the person fighting the uphill side of the battle will drown before it is over

      First of all, any post beginning with "Florida has an answer" should send you running for the hills. I've dealt with the State of Florida on a few small issues, and it's how I'd like my justice dealt.

      More seriously, the problem with this approach is that it has a condition that ensures that someone will "drown fighting the uphill side". In general, any time there's a condition where one party can be "drowned" fighting for their legal rights, you can be certain that the drowning will overwhelmingly be done by those least able to afford the lawyers. It won't necessarily correlate to justice. I think we'd all be better off trying to come up with legal systems that work better for everyone, rather than legal systems that shaft one party in various circumstances.

  9. Re:Rights? by Locke2005 · · Score: 5, Insightful

    Google is not blatantly violating copyrights. As a common carrier that does not censor postings, they are not directly responsible for material posted to sites owned by them. In addition, Google would claim they have promptly taken down infringing material as soon as they were notified. Now, has Google assisted other individuals in violating copyright? Yes, and one could argue that as a corporation they should be held liable for contributing to copyright infringement. But they did not intentionally or blatantly violate anyone's copyright themselves.

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  10. go tell it to the DMCA buddy by voss · · Score: 5, Interesting

    As much as I disliked the DMCA, the safe-harbor provision has done its job.

    Google didn't violate peoples copyrights. The individual uploaders may or may not have,
    according to the varying nuances of fair use. The benefits of youtube far outweigh
    the theoretical loss of revenue.

    Google spent a 100m not defending its good name but to set a legal precedent and defend the value of its company.
      Once the legal precedent has been set, the cost of defending these suits will drop a great deal.

    Of Google will claim the entire 100m as a tax writeoff.

    1. Re:go tell it to the DMCA buddy by RobertM1968 · · Score: 2, Interesting

      As much as I disliked the DMCA, the safe-harbor provision has done its job.

      Google didn't violate peoples copyrights. The individual uploaders may or may not have, according to the varying nuances of fair use. The benefits of youtube far outweigh the theoretical loss of revenue.

      Google spent a 100m not defending its good name but to set a legal precedent and defend the value of its company. Once the legal precedent has been set, the cost of defending these suits will drop a great deal.

      Of Google will claim the entire 100m as a tax writeoff.

      Screw that! I am very happy with the amount Google spent...

      *IF* Google remembers this part of the DMCA: 512(f)

      (f) Misrepresentations.— Any person who knowingly materially misrepresents under this section—
      (1) that material or activity is infringing, or
      (2) that material or activity was removed or disabled by mistake or misidentification, shall be liable for any damages, including costs and attorneys’ fees, incurred by the alleged infringer, by any copyright owner or copyright owner’s authorized licensee, or by a service provider, who is injured by such misrepresentation, as the result of the service provider relying upon such misrepresentation in removing or disabling access to the material or activity claimed to be infringing, or in replacing the removed material or ceasing to disable access to it.

      Inotherwords, Viacom owes Google their court costs, expenses AND the expenses related to disabling/removing the content. After all, Viacom knowingly had content removed that they posted or authorized for posting - that's a knowing violation right there - not to mention trying to use the DMCA for an "after the fact, the DMCA has already been satisfied on the other issues" attack.

      If memory serves, there are other sections as well that spell out some pretty nice (errr... nasty) damages that Google could be eligible for. So... I'd rather see the full ball game becoming a win for Google, instead of just the first couple innings. That would be a much better precedent. No longer would the **AA groups be seeding content to use to try to catch others, no longer would they recklessly send takedown notices for content they dont have the right to do so.

      Full court press Google!!! Go for the jugular!!!

  11. Re:Legal ridiculousness by 0123456 · · Score: 4, Insightful

    Law is a difficult topic and requires a lot of training.

    Law is a difficult topic and requires a lot of training because laws are written by lawyers. So long as that's the case, law-makers will never do in one paragraph what they could stretch to a thousand pages.

  12. Re:Legal ridiculousness by nomadic · · Score: 2, Insightful

    Laws written by non-lawyers tend to suck with ridiculous holes and unforeseen consequences. Condense a law that you find overwritten and I will find enough holes in it to drive a truck through.

  13. Re:Legal ridiculousness by nine-times · · Score: 2, Interesting

    "Loser pays" sounds good when you imagine the "good guy" is getting sued and he racks up a bunch of legal bills winning against frivolous lawsuits, but what about when the whole thing is turned around?

    Like lets say McDonald's was putting neurotoxins into Happy Meals and my child becomes permanently disabled because of it. I sue McDonald's, and they hire millions of dollars worth of lawyers who trounce my cheap lawyer. Now I'm on the hook for millions of dollars in legal fees?

    Or is that not how it works?

  14. Re:Legal ridiculousness by scot4875 · · Score: 3, Insightful

    I would accept your premise if thousand-page-long laws written by lawyers had no ridiculous holes or unforeseen consequences.

    --Jeremy

    --
    Jesus was a liberal
  15. Re:Legal ridiculousness by mini+me · · Score: 2, Insightful

    There is nothing wrong with highly skilled people charging top dollar. The problem is that I cannot hire an unskilled lawyer to take my case.

    If I want to hire a random guy off the street who is willing to represent me for $50/hr., so be it. It is my fault for choosing to use his services in the first place if something goes horribly wrong. Or maybe he will actually be really good at the work it and I will have saved a fortune.

    I recall reading about a case where a lawyer got into a lot of trouble for practising without the bar. What was most notable is that the article said he was really good at what he did. Why is the bar even necessary in cases like that? The bar does not have to be eliminated for those who want to have credentials to back up their services. That is how the free market is supposed to work.

  16. When elephants fight... by Drakkenmensch · · Score: 2, Insightful

    Every time two huge corporations duke it out in court, it's always a long protracted battle that can have only ONE clear winner: THE LAWYERS.

  17. Money better spent elsewere by helix2301 · · Score: 2, Insightful

    The sad thing is Google could have spent this money else were and actually did something that would have helped the technology community if they did not have to fight this stupid law suit. They are burning money defending laws that should not need to be defended. I hope Google keeps winning.