Last month, a US court ruled that Veoh could not be sued by Universal Music Group (UMG) under DMCA safe harbor. This month, the same court ruled in favor of Veoh, more precisely in favor of its investors. In the Napster case, the investor Bertelsman was sued for copyright infringement. Thus, UMG attorneys expected to do the same to Veoh’s investors.
The Los Angeles judge, A. Howard Matz, reminded that Veoh was not (yet?) yet guilty. Thus, it was impossible to sue the investors for an infringement that is not qualified. In the case of Napster, Bertelsman continued to support Napster once it was condemned. This is not the case.
Some Venture Capitalists will feel better. In these hard time to find money to invest, this may be a good news for VCs. They may take some calculated risks when investing in the Grey area of copyright.
The story of Veoh versus UMG continues.