Google sued over YouTube clips

Viacom has slapped YouTube and parent company Google with a lawsuit, accusing the wildly popular video-sharing site of "massive intentional copyright infringement" and seeking more than $1bn in damages.

The complaint, filed in the US District Court for the Southern District of New York, contends that nearly 160,000 unauthorised clips of Viacom's entertainment programming have been available on YouTube and that these clips have been viewed more than 1.5 billion times.

Viacom, an entertainment giant that owns DreamWorks, Paramount Pictures and a number of cable channels, said it has also asked the court for an injunction to halt the alleged copyright infringement.

Viacom said in its complaint: "YouTube appropriates the value of creative content on a massive scale for YouTube's benefit without payment or licence. YouTube's brazen disregard of the intellectual-property laws fundamentally threatens not just plaintiffs but the economic underpinnings of one of the most important sectors of the United States economy."

The lawsuit represents a serious escalation in the conflict with YouTube, and it is also the most significant legal challenge over intellectual-property rights to video-sharing's number one site. But some industry observers doubt this will embolden other entertainment companies to mount their own court challenges.

Google downplayed the legal challenge and extolled the benefits to content creators that it sees in YouTube.

It said in a statement: "We have not received the lawsuit but are confident that YouTube has respected the legal rights of copyright holders and believe the courts will agree.

"YouTube is great for users and offers real opportunities to rights holders: the opportunity to interact with users; to promote their content to a young and growing audience; and to tap into the online-advertising market. We will certainly not let this suit become a distraction to the continuing growth and strong performance of YouTube and its ability to attract more users [and] more traffic, and [to] build a stronger community."

Google, which acquired YouTube last October for $1.65bn, recognised the possibility that the video site would one day be forced to wage lengthy court battles. The company has reportedly set aside a sum of money to fund legal costs.

Meanwhile, Google has successfully negotiated licensing deals with many entertainment companies, including CBS, Warner Music Group and most recently, the BBC.

CNET News.com's Elinor Mills contributed to this report

Greg Sandoval writes for CNET News.com