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Friday, November 17, 2006

 

Google holds back $200 million in stock in the YouTube deal

USA Today reported this week that the search giant, Google has set aside more than $200 million in its concluded takeover of YouTube as a financial cushion to cover losses or possible legal bills for the numerous copyright violations on YouTube's video-sharing site by its users.
Google said it is withholding 12.5% of the stock owed to YouTube for one year "to secure certain indemnification obligations."

Google will also likely hang its hat on section 230 of the Federal Communications Decency Act. This congressional act protects online publishers from liability from what their users post, unless the publisher encouraged such postings.

# posted by SEOmanager @ 7:25 AM

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