Judge Rules Against Vivendi In Veoh Case; Ruled Veoh Satisfied DMCA Criteria

Posted Sep 15, 2009

“Veoh has shown that when it did acquire knowledge of allegedly infringing material — whether from DMCA notices, informal notices, or other means — it expeditiously removed such material, and UMG has failed to rebut that showing,” stated a court order by the U.S. District Court for the Central District of California. The Court made a ruling against Universal Music Group for its 2007 lawsuit against Veoh Networks Inc. Whenever Veoh received a DMCA takedown notie, they quickly reacted and removed the material.

UMG failed to show an appropriate rebuttal of Veoh’s proactive removal of copyrighted material. Universal said that the ruling was “wrong” and that they plan to appeal. “The balance between copyright holders and technology that Congress sought in enacting the DMCA has been upended by this decision,” stated Universal Music. The Veoh vs. Universal Music lawsuit was closely watched by media companies because Viacom has a pending lawsuit against Google over copyright material being uploaded on YouTube.

Dmitry Shapiro, the founder of Veoh said that the lawsuit was costly and dragged on for two years. Veoh has venture funding from Goldman Sachs, Time Warner, Spark Capital, Intel, etc.

Veoh raised about $70 million in total funding and is not profitable as of yet, but they expected to be by the second quarter of 2010. Veoh is exploring the possibilities of either selling themselves or raising additional investment.