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I’m sure you have heard the commotion over a judge ordering YouTube (owned by Google ) to hand over "all data from the Logging database concerning each time a YouTube video has been viewed on the YouTube website or through embedding on a third-party website" to Viacom . This has raised huge concerns centered around internet privacy and the seemingly spineless way Google has responded to the court order. Handing over personally identifiable information sets a president for other companies to do the same. In fact, the Wall Street Journal even hints that this is the end of Internet privacy .

Viacom ’s response

Monday, Viacom released a statement regarding the court order and what Google and Viacom have been doing with regards to the transfer of information. In it, they say:

"The personally identifiable information that YouTube collects from its users will be stripped from the data before it is transferred to Viacom . Viacom will use the data exclusively for the purpose of proving our case against You Tube and Google."

While popular response to the "big evil Viacom" would hint that this statement is nothing more than a cover up, I believe them. It’s clear that Viacom is looking for information about just how much of their content was viewed on YouTube so they can hand Google a bill. Viacom’s lawsuit is NOT with individual users, but with Google. This lawsuit was known well ahead of Google’s acquisition of YouTube. While Google has implemented ways to find copyrighted material on it’s site, there is really no way for them to completely stop it. They knew going in that this would be a case they would fight and most likely loose.

John Flowers made a great point on the July 9th edition of This Week in Media . He likens Google’s response to copyrighted online video to how Microsoft handled the $1 million/day fine they were giving in 1997 for bundling Internet Explorer in Windows 95. They simply decided to continue to pay the fine. Google will likely continue to pay fines to companies like Viacom for copyrighted content on their system until partnerships can be reached.

The REAL takeaway for Viacom

Of course, a hefty check for royalties will be coming Viacom’s way no matter what happens. You certainly can not ignore that fact. But one thing that people are missing is the fact that Viacom will essentially get exclusive access (apart from Google) to the biggest database of online video viewing habits in the world. This isn’t Neilson folks… it’s hard, complete data, and an insane amount of it. This is information that no other media entity has access to. With this data, Viacom can evaluate exactly where people’s viewing interests lie, compare online verses offline viewership, and further evaluate the marketing potential of online video.

How it can HELP increase online distribution of video

While there is a lot of "kick-in-the-pants" stuff on YouTube, I believe that Viacom will be Photo by Flickr user Dannysullivan surprised at just how many people view their properties online through YouTube. This will be data that Viacom will not be able to ignore. I suspect that this information will only INCREASE Viacom’s willingness to distribute their copyrighted material online. While their properties SHOULD be copyrighted, I think Viacom will see the incredible value that promotion through channels such as YouTube affords them. Steven Colbert owes a great deal of his success to the online community and to what WAS illegal sharing of the Colbert Report through sites like YouTube. The more companies realize that these channels can be utilized to promote their offerings, the more willing they’ll be to bring their content to the online world.

… and that my friends is great news.