Google Inc. (GOOG) Faces Mounting Criticism
Google (GOOG, 447.00) is facing mounting criticism and legal pressure from media companies around the world over how it allows users to search for books, TV shows, movies, and news online. On Tuesday, Microsoft (MSFT, 27.69) joined the folly, launching a fierce attack over what it views as Google's "cavalier approach to copyright," accusing the company of exploiting content without permission.
In a speech today at the Association of American Publishers' annual meeting, Microsoft's associate general counsel, Tom Rubin, is expected to say that while publishers and authors struggle to cover costs, companies that generate no content of their own are raking in billions through advertising, according to a copy of the speech provided by Microsoft.
Google's current book program involves scanning text from 12 libraries around the world, including collections at Harvard, Stanford, and the New York Public Library. Rubin thinks that Google's decision to take digital copies, unless told not to, violates copyright laws and deprives authors and publishers of revenues and "undermines incentives to create."
Microsoft, no stranger when it comes to antitrust issues, is attempting to differentiate itself from Google by trying to look like the good guy on the copyright issue. The question is whether content providers will buy into it. The software giant is in the midst of launching its own book-search service and a video sharing site called Soapbox. Online advertising is big business and is growing exponentially, driven in part by the explosion of video online.
Google said it complies with international copyright laws and states the exposure generates revenue for publishers, which amounted to $3.3 bln of advertising revenues for other Internet sites last year. Recently, a Brussels court ruled Google violated copyright law and US media giant, Viacom (VIA. 39.08) instructed the company to withdraw 100,000 clips of copyrighted content from YouTube.
According to Rubin, "Google takes the position that everything may be freely copied unless the copyright owner notifies Google and tells them to stop." This issue will likely not be resolved quickly or easily as online advertising has become more relevant as advertisers put money to work in an array of digital initiatives. From our perspective, content is the ultimate ruler as the distribution and the platform are just a means to an end.
--Kimberly DuBord, Briefing.com
In a speech today at the Association of American Publishers' annual meeting, Microsoft's associate general counsel, Tom Rubin, is expected to say that while publishers and authors struggle to cover costs, companies that generate no content of their own are raking in billions through advertising, according to a copy of the speech provided by Microsoft.
Google's current book program involves scanning text from 12 libraries around the world, including collections at Harvard, Stanford, and the New York Public Library. Rubin thinks that Google's decision to take digital copies, unless told not to, violates copyright laws and deprives authors and publishers of revenues and "undermines incentives to create."
Microsoft, no stranger when it comes to antitrust issues, is attempting to differentiate itself from Google by trying to look like the good guy on the copyright issue. The question is whether content providers will buy into it. The software giant is in the midst of launching its own book-search service and a video sharing site called Soapbox. Online advertising is big business and is growing exponentially, driven in part by the explosion of video online.
Google said it complies with international copyright laws and states the exposure generates revenue for publishers, which amounted to $3.3 bln of advertising revenues for other Internet sites last year. Recently, a Brussels court ruled Google violated copyright law and US media giant, Viacom (VIA. 39.08) instructed the company to withdraw 100,000 clips of copyrighted content from YouTube.
According to Rubin, "Google takes the position that everything may be freely copied unless the copyright owner notifies Google and tells them to stop." This issue will likely not be resolved quickly or easily as online advertising has become more relevant as advertisers put money to work in an array of digital initiatives. From our perspective, content is the ultimate ruler as the distribution and the platform are just a means to an end.
--Kimberly DuBord, Briefing.com
Labels: GOOG, Google Inc.
posted by Stock Administrator @ 8:08 PM
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