Do user-generated content (UGC) companies like YouTube and Veoh qualify for "safe harbor" protection under the DMCA, or can they be held financially liable for not cracking down harder on copyrighted material uploaded to their servers?
That absolutely key question has been the basis for Viacom's $1 billion lawsuit against YouTube, while video host Veoh has also come under legal assault from Universal and separately by porn producer Io. A federal judge ruled yesterday on the matter in the Io case, saying that Veoh does indeed qualify for a Digital Millennium Copyright Act safe harbor. But Viacom says its case will continue regardless.