While most of us are familiar with the reasons behind the continuing battle between old and new media companies, I want to talk a little about why Viacom (VIA-B) had to file this lawsuit against Google (GOOG).
With the digital space growing so quickly, law really hasn't kept up with it, and there had to be a time when things needed to settle down and pieces of the puzzle put together so the lawsuit could be initiated. Obviously Viacom feels that time is now.
This is in reality a trial balloon case. Nothing has really been decided that companies can count on, so this case should provide a framework for everyone to work with once it's through.
Viacom has nothing to lose as the use of their copyright material continues pretty much unabated. If a judge or jury decides that they are in the right, it would change drastically the digital media space.
If they are found to be in the wrong, they haven't lost anything as things are being run as if they have no power or say in the matter as it is.
Another thing we'll find out as this case unfolds is that a lot of the moves recently announced by both parties concerning partnerships were also part of a plan to put each of them in a better legal position for when this process began to play out.
We'll hear about the deal by Viacom with Joost and the YouTube deals with CBS (CBS-A) and others.
I think this is really a good thing to happen. There's simply too much up in the air that needs to be clarified. Hopefully by the time it all plays out, that will be the end result. This will take some time though. No matter who wins the first round, it will be fought up to as high as the courts will allow it to be.
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