Although Google is not disclosing the origin of the suit, a filing with the Securities and Exchange Commission earlier this week indicates that its Google Video service is the subject of a copyright
infringement lawsuit. It also admitted the YouTube acquisition may lead to additional liabilities.
“Certain entities have also filed copyright claims against us, alleging that features of certain of our products, including Google Web Search, Google News, Google Video, Google Image Search, and Google Book Search, infringe their rights,” it said in the filing.”In addition, our planned acquisition of YouTube may also subject us to additional copyright claims upon the closing of the transaction,” Google continued. The company warned that any action could cause a loss of revenue.
YouTube has been a popular target for copyright infringement lawsuits, and from the Mountain View, Calif. search company’s comments, Google Video is not immune to the same problems.
Both allow unmoderated posting of videos, which often includes copyrighted material.
A rumor has circulated in recent weeks that as much as $500 million of the YouTube purchase price has been set aside to settle any legal issues. However, Google CEO Eric Schmidt has denied that is the case, although he acknowledged the company was working with YouTube to
address copyright concerns.