Perhaps new Veoh CEO Steve Mitgang is the kind of guy you don’t want to try to intimidate. He just called me to say that Universal Music made one too many threats to sue his company. To protect themselves, they are suing Universal Music in federal court and seeking what is known as a declaratory injunction to bar Universal from taking legal action.
Given that the lawsuits tend to flow one way against the video startups, this is a major surprise.
In the press release, Veoh says they acted based on “unreasonable threats” from Universal and filed the lawsuit under the safe harbor provisions of the DMCA. In a phone call a few minutes ago, Mitgang told me that the two companies met recently, and that Universal made it clear that they would be suing Veoh for copyright infringement in the near future. These kinds of threats are not idle - Universal tends to follow up with actual lawsuits.
When a company feels that a lawsuit is imminent, they can strike first to head it off. Since Veoh feels it has protection under the DMCA for its business model, they are striking first.
Mitgang also mentioned to me that Universal Music has never sent them a DMCA take down notice of any kind. He says that they would have complied immediately.
Story in progress, check back for more.
Complaint is below:
That’s awesome!!
Finally, someone decides to question the ridiculousness of some of these DMCA allegations.
Good luck Veoh!
I hope it works, but it is a long battle.
At least they are sticking it in their faces. Good for them!
Give ‘em hell Steve!
Sweet.
Go get ‘em Veoh!
Nice…
Maybe Veoh can set up a Paypal donation button so we can contribute to the good fight that is bound to be expensive.
I would chip in a couple of bucks…
This does not appear to be logical.
Why would Universal meet with a Start Up and constantly warn them that they are about to be sued and NOT specifically indicate to them what laws they had violated.
There must have been a reason for both busy parties to agree to meet.
If someone indicates to you that you are about to be sued - would you not ask them what copyrights you are violating?
Would you or your Lawyers not insist on a list of violations and immediately close those users accounts (or a least take down the videos or MP3 or TV programs)
An injunction will only be effective if Universal can not show a list of violations. A company that large and powerful would not make idle threats and a legal team that experienced would never do something that reckless unless they had real evidence to support their facts.
We have to get Universal’s side of the story to really get a balanced perspectivce.
Veohhhhhyyeahhhhh!
Go Veoh!
That’s great, my respect for Veoh.com just went up another notch.
I wish them the best of luck.
I’m sure Veoh complies with DMCA removal requests, but old-school litigation happy companies like Universal need to start feeling that .com startups arent just going to bend and crack under legal threats.
The DMCA exists for a reason, it’s not possible to prevent infringement 100% and copyright owners need to accept this as a fact if we’re going to continue to enjoy an efficient internet. Just as .com’s have evolved to serve the media-hungry masses, the producers need to evolve and find efficient ways to capitalize on the new distribution channels. They’re only stifling their own publicity and growth by shooting the messengers.
Veoh FTW - I hope
Interesting.
Brilliant. Even if this case gets thrown out, they get press and look like the good guys. I hope Veoh kicks YouTube’s ass
Hey Sammy,
Good idea and here is the perfect app for Mitgang to put up on his site! http://www.chipin.com/
As you say, we all would chip in a couple of bucks!
Good luck to Veoh.
Man bites Dog!
My respect for Veoh…not that I had any…dropped below zero.
The only people who seek a declaratory judgment preventing a suit are the ones who need one to avoid getting their asses handed to them in a real lawsuit.
I think this is an interesting and smart move by Steve and Dimitri. These are smart guys and I am interested to see the outcome.
Best of luck guys.
What no one has mentioned here is that VEOH publishes an amazing amount of great unique content. If you want good entertaining content, this is the place to go. They are moving in the right direction. What they are doing makes a tremendous amount of sense. I am a huge fan of VEOH.
Cheers!
Rodney Rumford
The problem for Veoh is that the recent supreme court rulings that came out of Grokster have muddied the waters.
Once a technology provider could seek summary judgement based on whether the product has significant non-infringing use. ‘Intent’ is now a factor of contributory copyright infringement. If UMG launch an assualt, Veoh will have to prove their intent is good and the only way to do this is through discovery of every single email, server log, deleted file and IM logs, deposition of all the staff and partners, cross examination in trial. Can Veoh afford what that’s going to cost? This is an interesting pre-emptive move and I hope it avoids the next steps.
Phil Morle
Omnidrive
I used to work with Steve Mitgang early in both of our careers. He’s one of the brightest and most creative people I know and he just showed it.
Take them down Veoh, they are just bullies who need to understand the new wave of this world. As for other ideas, move your video platform to another country and do your own thing, that’s the only way to get around these ridiculous lawsuits. I love the fact that this happened albeit the issues of possible failure…
Veoh Networks, Inc., is privately held and backed by leading technology and media investors, including Spark Capital, Michael Eisner’s Tornante Company, TIME WARNER INC. and Shelter Capital Partners.”
sorry here’s the full post
Veoh Networks, Inc., is privately held and backed by leading technology and media investors, including Spark Capital, Michael Eisner’s Tornante Company, TIME WARNER INC. and Shelter Capital Partners.”
source:http://www.crunchbase.com/company/veoh
so its time warner against universal?
Big companies making threats just because they can…sound like the bully you know? This is bull, way to go Veoh before they try and take your lunch…no sorry, venture capital, money.
I don’t even go to Veoh and they’re already my favorite video site. hahaha
I enjoy the contrarian approach to conflict. Be proactive, not reactive.
ROCK ON!
And hey Veoh,
Let us know when the “Chip In” feature is available!
A company that large and powerful would not make idle threats and a legal team that experienced would never do something that reckless unless they had real evidence to support their facts.
You have got to be kidding. Despite what tort reform advocates would have you believe, businesses file waaaay more frivolous lawsuits than consumers. If so many are so willing to file lawsuits, what do you think they’ll do *before* they file the lawsuit?
Good to see people like the “chip in” idea. Validates some faith in humanity and all
Taking it further…
Maybe this can be the idea behind the business model for a social-cause start-up. They create content, allow content sharing (withing reasonable limits like Veoh and not breaking any laws), and make sure they get on the radar for the big boys. Then, when lawsuits are pending, the mass public chips in a few bucks each to help collaboratively fight the restrictive DMCA laws. And we see if said company can set a legal precedent (propelled via grass roots funding).
Would pave the path for large scale content opportunities for other start ups that may be restricted by legal fears, and that can only mean good things for consumers i.e. all of us.
Go Veoh! Go Veoh! Go!
The community is all behind you!! Go Veoh!
hi i enjoyed the read
That’s great.
I have always been a fan of Veoh and this just bumped it up a notch.