Whose video is it, anyway?
YouTube's success has opened Pandora's box of copyright issues

By Heather Green
BusinessWeek Online

Updated: 2:56 p.m. CT July 28, 2006

URL: http://www.msnbc.msn.com/id/14079318/


When YouTube was sued on July 14 for copyright infringement, the shock 
wasn't that the video-sharing service was being yanked into court. 
Questions had been swirling for months about whether the upstart, which now 
dishes up 100 million daily videos, was crossing copyright boundaries by 
letting its members upload videos with little oversight.

What was surprising was that it was an individual who fired the first shot 
— Robert Tur, an independent photographer famous for filming the 1992 Los 
Angeles riots — instead of a big Hollywood studio or major music label.

The dustup spotlights the role the Internet increasingly is playing in 
letting artists and other individuals reach out and control media. But more 
to the point, it shows how YouTube is evolving into a sort of eBay for 
video: the first place you go to find a clip, but also a place where more 
folks are itching to get rewarded for supplying it. A growing group of 
creative types is furiously producing clips, video blogs, and animated 
shorts with the hopes of making money through advertising or selling DVDs.

While YouTube promises huge distribution, the site and its users are just 
starting to sort out how to apportion the power they've suddenly acquired. 
Some indies are becoming wary of YouTube, which doesn't share ad dollars 
with them, unlike rival services.

"The exposure is great, but with all the copyright issues and the lack of 
potential ad revenues, it seems like something that we're not going to get 
into right now," says Orrin Zucker, co-creator of It's JerryTime, a popular 
animated cartoon series that is shown, for now, on the artists' own site.


No clear boundries
Tur's lawsuit shows the fine line that YouTube is walking as it attempts to 
build its business model. Tur is suing because his videos of the riot and 
other events were uploaded without his permission. Although lawyers agree 
that YouTube should be protected by copyright law as long as it responds to 
content owners' requests to take down their works, it entered uncharted 
territory when it recently began adding ads next to search results.

The law prohibits a site from benefiting financially from infringement, but 
the company argues that it's protected since it doesn't sell ads against 
individual videos. Still, the courts haven't set clear boundaries.

"There has to be some way to make money with advertising that doesn't 
deprive you of the safe harbor. But where that line is, no one really 
knows," says Fred von Lohmann, a lawyer for the Electronic Frontier Foundation.

Major media companies are executing a delicate dance with YouTube. The 
17-month-old site now accounts for an astonishing 60 percent of all videos 
watched online. NBC and E! Entertainment are working with YouTube to 
promote select clips.

And NBC has set up communications with YouTube to expedite the removal of 
its copyrighted material. Meantime, the music industry is pairing takedown 
notices with licensing discussions. Barring success there, however, 
lawsuits are still a possibility, says a music executive.


Instant hit
Indie video producers who don't have a battery of lawyers are learning just 
how freewheeling YouTube can be. They complain that removing clips is 
onerous. The time lag whittles into an audience that can rapidly build — 
and disappear — for short clips. It took eight months for Fritz Grobe and 
Stephen Voltz to mastermind a now iconic Web video that shows them creating 
intricate fountains of soda by dropping 500 Mentos into 100 2-liter bottles 
of Diet Coke.

The video became an instant hit after it was published in June on Revver, a 
service that shares ad revenue. Within days, bootlegs showed up on Google 
and YouTube. Voltz, a civil litigation lawyer, figured out the process for 
getting the videos removed. But as copies kept reappearing, Voltz learned 
that he had to keep contacting YouTube to take down each new version.

The Mentos/Diet Coke video was seen 5.5 million times on Revver and made 
Grobe and Voltz $30,000. But Voltz estimates they lost another $30,000 to 
pirated copies. And for several days recently, blogs buzzed with attempts 
to sort out the rights of artists to control uploaded videos. As the 
prospect grows for making money online, what started as a lark for many is 
becoming all too serious.

URL: http://www.msnbc.msn.com/id/14079318/


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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