legal final report socila media .docx

download legal final report socila media .docx

of 138

Transcript of legal final report socila media .docx

  • 8/14/2019 legal final report socila media .docx

    1/138

    YouTube and what are their

    legal rights such as:

    1. Direct copyright Infringement

    Public performance

    2. Direct copyright infringement

    Public Display

    3. Reproduction of copyright

    material

    4. Inducement of copyright

    infringement

    5. Contributory copyright

    infringement

    6. DMCA safe harbours

    Legal aspectsin social

    media

    Youtube vs Viacom , an emphasis

    BY- Setu Sharma (SMBA12030)

  • 8/14/2019 legal final report socila media .docx

    2/138

    TABLE OF CONTENTS

    Preview

    Acknowledgement

    Definitions

    Chapter 1 : Abstract

    Chapter 2 : Executive Summary

    Chapter 3 : Introduction

    Section 3.1 : What is Social Media ?

    Section 3.2 : Major Social Media Companies

    Section 3.3 : Problems faced by Social Media Companies

    Section 3.4 : Youtube Brief Overview of the Company

    Section 3.5 : Viacom Brief overvire of the Company

    Chapter 4 : Company Structure

    Section 4.1 : Youtube Board of Directors 2013

    Section 4.2 : Viacom Board of Directors 2013

    Chapter 5 : Policy and legal framework

    Section 5.1 : Sector Legislation

    Section 5.2 : Terms of service

    Section 5.3 : Regulations

  • 8/14/2019 legal final report socila media .docx

    3/138

    Chapter 6 : Social media and IPR issues

    Section 6.1 : Defamation

    Section 6.2 : Copyright

    Section 6.3 : Trademark

    Section 6.4 : Trade Secret

    Chapter 7 : Copyright Laws

    Section 7.1 : The U.S copyright Laws

    Section 7.2 : Indian Copyright Laws

    Section 7.3 : U.K copyright Laws

    Section 7.4 : U.A.E Copyright Laws

    Chapter 8 : Intellectual Property Rights

    Section 8.1 : The WIPO

    Section 8.2 : CLEA

    Section 8.3 : Fair use

    Chapter 9 : Internet Usage and expansion of social media

    Chapter 10 : Youtube

    Acquired by Google

    Chapter 11: Viacom International vs. YoutubeInc.

    Section 11.1 : Introduction

    Section 11.2 :Background

    Section 11.3 : Red knowledge flag

  • 8/14/2019 legal final report socila media .docx

    4/138

    Chapter 12: Digital Millenium Copyright ActSafe Harbors

    Chapter 13 : District Court Proceedings

    Section 13.1 : District Court Proceedings

    Section 13.2 : 2008 district court ruling

    Section 13.3 : 2010 district court ruling

    Section 13.4 : Appeleatte court proceedings

    Chapter 14 : UMG vs Shelter Panthers verdict

    Section 14.1 : UMG vs Shelter Panthers verdict

    Chapter 15 : Consumers - Terms of Use

    Section 15.1 : Principles

    Chapter 16 : Disclaimer

    Section 16.1 : Youtube disclaimer

    Section 16.2 : Creative commons

    Section 16.3 : Terms of Service

    Chapter 17 : Additional Legal ProvisionsYoutube

    Section 17.1 : Compliances

    Section 17.2 : No Implied Rights

    Section 17.3 : Non-Exclusive Rights

    Section 17.4 : Publicity laws

    Section 17.5 : Confedentiality

  • 8/14/2019 legal final report socila media .docx

    5/138

    Section 17.6 : Indemnification

    Section 17.7 : Termination

    Section 17.8 : Modification

    Chapter 18 : Analysis

    Chapter 19: Sources of biblography

    Chapter 20 : List of tables and figures

  • 8/14/2019 legal final report socila media .docx

    6/138

    ACKNOWLEDGEMENT

    This report would not have been possible without the co-operation and support of

    many people and I would like to take this opportunity to thank them all.

    With a deep sense of gratitude, I acknowledge here, the motivation, guidance and

    inspiration I received from my professor Mr. Deepak Dayal, who showed full

    confidence in my abilities and encouraged me to perform to the best of my

    capabilities. Without his valuable support and input, this report would not have

    seen the light of the day. I thank you sir for your guidance, support, time and

    consideration.

    I am also very grateful to the IMT management for providing me with excellent

    facilities which helped me to complete my project report. I would like to express my

    gratitude to all my professors for sharing with me their valuable knowledge and

    experience which have helped me during my course.

    Last but not the least; I would like to thank my family, friends and fellow students

    for their moral support.

    Setu Sharma

    SMBA1230

    Dt. 11thOctober, 2013

  • 8/14/2019 legal final report socila media .docx

    7/138

    Definitions

    Authenticity: It is the sense that something or someone is real. Blogs enable

    people to publish content, and engage in conversations, that show their interests and

    values, and so help them develop an authentic voice online.

    Content management systems (CMS): They are sometime described as the Swiss

    Army knives of social media. They are software suites offering the ability to create

    static web pages, document stores, blog, wikis, and other tools. CMSs have the

    advantage of offering comprehensive solutions - but can be challenging to configure,

    and each of the different tools may not be quite as good as a stand-along version.

    Unless you have some technical skills, they are best suited for situations where you

    can employ a web developer to work with you, and provide some continuing

    support.

    Control: social networking is difficult to control because if people can't say

    something in one place they can blog or comment elsewhere. That can be

    challenging for hierarchical organisations used to centrally-managed websites.

    Copyright: sharing through social media is enhanced by attaching a Creative

    Commons license specifying, for example, that content may be re-used with

    attribution, provided that a similar license is then attached by the new author. This

    work is under that type of license - Creative Commons Attribution Share-Alike 2.5

    License

    Culture: social media only works well in a culture of openness, where people are

    prepared to share. For that reason, commitment and attitude are as important as

    tools. Creative two-way communication and collaboration is unlikely to flourish in

    an organisation where the norm is top-down control. When people in that sort of

    culture talk about networking they may have a hub and spokes model in mind, with

    them having some central control.

  • 8/14/2019 legal final report socila media .docx

    8/138

    Location: the nature of location and presence is changed by the Internet and social

    media, because you can be active online in many different places, including in

    virtual worlds.

    Platform: It is the framework or system within which tools work. That platform may

    be as broad as mobile telephony, or as narrow as a piece of software that has

    different modules like blogs, forums, and wikis in a suite of tools. As more and more

    tools operate "out there" on the web, rather than on your desktop, people refer to

    "the Internet as the platform". That has advantages, but presents challenges in

    learning lots of different tools, and getting them to join up.

    Registration:it is the process of providing a username, password and other details

    when seeking to access a website that has restricted access.

    Remixing: social media offers the possibility of taking different items of content,

    identified by tags and published through feeds, and combining them in different

    ways. You can do this with other people's content if they add an appropriate

    copyright license.

    Sharing: is offering other people the use of your text, images, video, bookmarks or

    other content by adding tags, and applying copyright licenses that encourage use of

    content.

    Social media: it is a terms for the tools and platforms people use to publish,

    converse and share content online. The tools include blogs, wikis, podcasts, and sites

    to share photos and bookmarks.

    Social networking sites: these are online places where users can create a profile for

    themselves, and then socialise with others using a range of social media tools

    including blogs, video, images, tagging, lists of friends, forums and messaging.

    Subscribing: it is the process of adding an RSS feed to your aggregator or

    newsreader. It's the online equivalent of signing up for a magazine, but usually free.

  • 8/14/2019 legal final report socila media .docx

    9/138

    Taxonomy: It is an organised way of classifying content, as in a library. Providing

    contributors to a site with a set of categories under which they can add content is

    offering a taxonomy. Allowing people to add their own keywords is to endorse

    folksonomy.

    Terms of services: these are the basis on which you agree to use a forum or other

    web-based place for creating or sharing content. Check before agreeing what rights

    the site owners may claim over your content.

    Trackback: some blogs provide a facility for other bloggers to leave a calling card

    automatically, instead of commenting. Blogger A may write on blog A about an item

    on blogger B's site, and through the trackback facility leave a link on B's site back to

    A. The collection of comments and trackbacks on a site facilitates conversations.

    Transparency: Enhancing searching, sharing, self-publish and commenting across

    networks makes it easier to find out what's going on in any situation where there is

    online activity.

    Usenet: User generated content is text, photos and other material produced by

    people who previously just consumed.

    Virtual worlds: These are online places like Second Life, where you can create a

    representation of yourself (an avatar) and socialise with other residents. Basic

    activity is free, but you can buy currency (using real money) in order to purchase

    land and trade with other residents. Second Life is being used by some voluntary

    organisations to run discussions, virtual events and fundraising.

    Web 2.0 : It is a term coined by O'Reilly Media in 2004 to describe blogs, wikis, social

    networking sites and other Internet-based services that emphasize collaboration and

    sharing, rather than less interactive publishing (Web 1.0). It is associated with the

    idea of the Internet as platform.

  • 8/14/2019 legal final report socila media .docx

    10/138

    Chapter 1: Abstract

    The project I have taken is from social media company, google owned YouTube. As

    internet is spread over the world and has users all over the world, because of this

    and having numerous users increases legal complexity involved with such

    companies.

    With this case I would specifically focus on the problems faced by companies like

    YouTube and what are their legal rights such as:

    1.

    Direct copyright Infringement Public performance2. Direct copyright infringement Public Display3. Reproduction of copyright material4. Inducement of copyright infringement5. Contributory copyright infringement6. DMCA safe harboursApart from this it would specifically it would enlighten us how difficult it is to

    monitors the users all across the globe and what are the responsibilities and steps

    they can take legally to stop such events

  • 8/14/2019 legal final report socila media .docx

    11/138

    Chapter 2: Executive Summary

    Viacom, the media conglomerate that owns a slew of television networks as well as

    Paramount Pictures, sued Google, the owners of YouTube, for direct and secondary

    copyright infringement. In essence, Viacom claimed that YouTube violated

    copyright laws by helping distribute illegally copied videos that were uploaded to

    the site by individual users.

    The case cantered on the Digital Millennium Copyright Act (DMCA). This federal

    law, enacted in 1998, was meant to update copyright laws for the 21st century.

    Within the law, legislators created a way for website producers to escape copyright

    lawsuits, called a Safe Harbor provision. In order to invoke the Safe Harbor, the

    court ruled, YouTube must remove any material violating copyright laws once it has

    specific knowledge of particular copyrighted videos that the site is helping to

    distribute. Judge Stanton concluded that it was against the DMCAs purpose to hold

    YouTube legally liable for every video uploaded on the website some 20 hours of

    video every minute even if they might have had a general idea that the site was

    being used to violate copyright laws.

    Viacom has stated that it intends to appeal the ruling to the Second Circuit Court of

    Appeals, one of two federal appellate courts that frequently hear these types of

    cases. While Judge Stanton seemed relatively comfortable on the footing he created

    with the opinion, a higher court may simply disagree.

    Judge Stanton focused heavily on the statements of legislators prior to the DMCAs

    enactment, often referred to as legislative history. While that may have sufficed for

    Judge Stanton, many other judges (Justice Scalia on the Supreme Court most notably

    %) find such inquiries to be generally unpersuasive.

  • 8/14/2019 legal final report socila media .docx

    12/138

    THE BURDEN FOR VIACOM

    The problem for Viacom on appeal, according to Kurt Opsahl, senior staff attorney at

    the Electronic Frontier Foundation (EFF), is that they are essentially asking a court to

    change commonly used interpretations of the DMCA.

    Thats a heavy burden and they werent able to come up with it at the district

    court, he said. Viacoms best bet may be to argue that the judicial interpretations of

    existing laws simply do not protect copyright holders in the way that Congress

    originally intended.

    YouTube certainly wouldnt look like it does now, said Sherwin Siy, deputy

    legal director at Public Knowledge. Sharing video clips on the Internet would

    just go out of the window. Both Public Knowledge and the EFF have publically

    supported Googles position in this case, filing court documents on their behalf.

    Siy went on to note that if websites that display user-generated content are held

    liable for all of the material posted on their site, these forums for social networking

    will evaporate under the constant fear of being sued by copyright holders.

    WHO TO PROTECT: PRODUCER OR DISTRIBUTOR?

    The courts opinion was grounded on the purpose underlying the DMCA, which,

    Judge Stanton stated, was mindful of the inherent tension between contentproducers and distributors on the Internet. On one hand, copyright laws need to

    protect the rights of video creators. Without such rights, media giants like Viacom

    would not have the economic incentive to create quality video programming.

    According to a San Francisco Chronicle editorial published on Monday, strong

    copyright protections are needed to ensure that those talented enough to create

    programming can make a living doing it.

  • 8/14/2019 legal final report socila media .docx

    13/138

    We cant expect people to create things for free unless we believe that the only

    people in our society who can be creative are those who are already rich, the

    editorial stated.

    On the other hand, if copyright laws are too restrictive, Internet buffs would be

    unable to experiment with different video distribution models. When the Viacom

    case was just starting, the EFF released a statement noting, If Viacom convinces a

    court that YouTube is nevertheless liable for copyright infringement, it could have a

    chilling effect on any business that hosts content on behalf of users and thus frustrate

    the many perfectly lawful uses of such technologies.

    In accordance with EFFs stance, Judge Stantons decision essentially holds that

    while copyright holders need to be protected, Congress (via the DMCA) wanted to

    protect the Internets open development even more.

    The courts ruling is also consistent with the theory supporting another law directly

    aimed at lawsuits on the Internet: Section 230 of the Communications Decency Act.

    Section 230 protects website producers from being sued for the statements Internet

    users make on a site through the use of comment forums and the like. While Section

    230 has been criticized, courts have agreed that in passing the law, Congress intent

    was to make website producers immune from liability in order to foster innovation

    and growth on the Internet.

    Additionally, Judge Stanton had a practical basis for his decision. Although it is

    surely difficult for Viacom to troll the Internet minute-by-minute attempting to find

    illegally copied or distributed video, it is not impossible. The court put the onus on

    content producers not distributors like YouTube to police the Internet and seek

    out when their copyright material is being illegally uploaded. YouTubes case was

    surely helped by the fact that when Viacom notified the website that it was hosting

    specific copyrighted videos, YouTube swiftly removed them from the site.

  • 8/14/2019 legal final report socila media .docx

    14/138

    The case revolves around the same and the importance of copyright and IPR laws,

    importance of the safety harbors and DMCA and its implication on social media as

    with the advent of internet the freedom of usage has increased to all the users

    around the world.

  • 8/14/2019 legal final report socila media .docx

    15/138

    Chapter 3: Introduction

    Today Internet penetration in the U.S is 85% and across the globe is more than 50%

    and we have 3.5 billion internet users all over the world, which has ensured the

    companies such as YouTube have prospered and have been playing a major part in

    ever growing technology of the beautiful world, but with comes problems of

    massive magnitude that is copyright infringement and users uploading the pirated

    videos. Millions of videos are uploaded every day and YouTube keeps track of all

    the videos and filter them.

    In 2007 a case arose, where Viacom filed a lawsuit against the YouTube for copyright

    infringement after it was found that thousands of videos of the SpongeBob, which is

    a home production of Viacom was being uploaded by users in YouTube has had

    become very popular, seeing this Viacom wanted to do a formal agreement where

    they would sell SpongeBob rights to YouTube but for some reasons the talks broke

    down and law suit was filed worth $ 1 Billion. The copyright infringement was done

    and same videos of the show were reproduced on YouTube, but question was how

    far YouTube is responsible for the event and how far are users responsible for the

    same. It also shows the ethical responsibility of both the companies towards the

    event and of the users of YouTube. It includes particular emphasis on whether:

    1. YouTube has knowledge or awareness of any specific copyright infringingvideos on its website

    2. YouTube wilfully blinded itself to such infringements3. You tube had right and ability to control such activity.

    Majorly the section covered is 512 (C) (1) (B).

  • 8/14/2019 legal final report socila media .docx

    16/138

    3.1 What is social media?

    At its simplest, social media is interacting with others while creating content.

    Content can be discussions, videos, opinions, photos, and much more.

    Social media is information being passed in all directions. Government can join the

    fray, either harnessing the flow of information or adding their own voice.

    To understand social media, the different ways people engage must be examined:

    Some people createcontent informing, changing opinions and leading trends.

    Some people just listen- whether occasionally or all the time. Some people dig through information and shareit with others - adding their own

    flavour.

    Figure 1: Social media

    By analogy to traditional forms of media, the roles can be described as Content

    Creator-> news station, advertiser. Blogger-> chat show. Listeners-> audience.

    The real power of social media comes from the fact that anyone

    can play any role. Anyone can syndicate content and views to

    the entire world for free. Now it is common to see news Social Media

    Users -Creating,

    Sharing

    Content creators

    Sharers

    Listeners

  • 8/14/2019 legal final report socila media .docx

    17/138

    channels accept live feedback from viewers and respond in real-time, for news

    channels or to interview bloggers

  • 8/14/2019 legal final report socila media .docx

    18/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    However, this still makes the flow of communications seem linear. The same

    person can play different roles. They can:

    Listento news and press releases Discussthat information with others; Shareinformation, media and thoughts with a network; and Engagewith friends and readers, sparking conversation or asking for help.

    This means users can interact with everyone. Anyone has the power to initiate

    the flow of information. An event can be filmed on a mobile phone, and

    syndicated to news channels worldwide within hours and discussed across the

    television and internet.

    Listenersare excited because they have access to creatorsas never before, but it

    isnt a one-sided transaction. Now creatorshave instant access to feedback from

    their viewers, and access to the stream of public opinion.

    Its not hard to see the implications this has for government. For example, users

    can easily discuss key issues with policy makers, researchers, NGOs, and citizens

    from Western Australia, Australia or around the world.

  • 8/14/2019 legal final report socila media .docx

    19/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    3.2 Major Social Media Companies

    There are quite a large number of social media companies and there are few

    dominant ones :

    Figure 2 : Top Social Media Companies

    Figure 3 : Top Social Media Companies

    Linkedin

    Twitter

    YouTube

    Facebook

    972

    5010

    140

    4300

    0

    1000

    2000

    3000

    4000

    5000

    6000

    Linkedin Facebook Twitter Youtube

    TOP SOCIAL MEDIA COMPANIES

    Revenue(in million USD)

  • 8/14/2019 legal final report socila media .docx

    20/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    There social media companies are amongst the top companies of the world in

    which few account to Fortune 500 companies of the world which include the

    likes of Facebook . It is a very innovative and fast paced industry and has billions

    of users.

    3.3 The Problems faced by the Social Media companies legally

    The social media is a very big industry and has many users which number in

    billions , so there is always a legal aspect to the social media and this industry

    faces a lot of problems and issues related to the same.

    There are approximately 400 million Facebook users; nearly 20 million people

    useTwitter; and according to Technorati.com, there are some 70 million blogs, a

    number thatmay be doubling every six months. It is no wonder, then, that social

    networking andsocial media are the next big thing for businesses large and

    small. Social networkingtools are used by advertisers and marketers, by human

    resources departments, and ofcourse by job-seekers and employees. For many

    companies, the question now is not whether to use social media in its business,

    but how. And as with any new aspect ofdoing business, there are several

    potential pitfalls that a company must be aware of toavoid running into legal

    difficulties. The following are some of the legal issues that acompany may face as

    it integrates social media into its business practices:

    1) Disclosure of Confidential Information

    Often unknowingly, confidential information, such as trade secrets, may be

    disclosed by an employee or other party with knowledge on popular social

    media websites such as Twitter, Facebook, or LinkedIn. Confidential information

    may also be disclosed via blogs, chat rooms, and anonymous blog comments.

  • 8/14/2019 legal final report socila media .docx

    21/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Widespread disclosure of trade secrets, in particular, can result in the loss of

    intellectual property rights in the confidential materials. In addition, some

    websites purport to claim ownership of userposted information, such as

    comments to a story. The best protection is to updatepolicies and procedures so

    that employees are aware of their ongoing obligations not todisclose confidential

    or proprietary information.

    2) Unauthorized Use of Trademarks

    Unauthorized use of third party trademarks on a social media site may lead to

    legal liability for trademark infringement, dilution or unfair competition. While,

    in certain circumstances, it may be a permissible fair use to refer to a company

    and its product or service in a product review, blog, or status posting, it is not

    permissible to use the trademarks of others to create a false impression of

    endorsement, affiliation or sponsorship. Also, websites such as Facebook now

    have sophisticated infringement reporting policies whereby a trademark owner

    can prevent another party from adopting its mark as a username or the like.

    3) Unauthorized Use of Copyright-Protected Works

    Copyright-protected works, such as text, videos, music, photographs, and source

    code, are often copied from another location and used on a social media website

    without the authorization of the content owner. Use of copyright-protected

    works without authorization creates the potential for infringement liability. Also,

    site owners may be protected under a safe harbor provision in copyright law,whereby if they take down infringing content after receiving notice, they are

    protected from liability. This safe harbor does not automatically apply to

    trademarks, but similar procedures should be implemented by site owners for

    the unauthorized use of marks.

  • 8/14/2019 legal final report socila media .docx

    22/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    The best practice is to seek permission before using material that appears to be a

    copyright-protected work. In some cases, the content owner may charge a license

    fee, but that fee will certainly be less costly than an infringement lawsuit. Some

    content, though, is available for public use without express permission, such as

    open source code.However, even that material often requires attribution to the

    original author, so pay close attention to the terms and conditions of use.

    4) Defamation Issues

    Some of the features that make social media attractive, such as real-time

    interaction and the ability to post on the fly, are the same ones that could result

    in unintended legal liability. Statements published to a limited group of

    connections or friends that arguably defame a third party may result in legal

    action against the poster. Given the infancy of social media, it is unclear whether

    courts will view this type of posting as sufficient for libel purposes, but best

    practices are to avoid statements that could be construed as defamatory. Also,

    posts made anonymously may be traceable via IP address or similar technique.

    So anonymity alone will not necessarily prevent liability.

    5) Electronic Discovery

    While the rules and practices of litigation generally lag behind the actual

    technology employed, courts have begun to grapple with issues of discoverable

    information in electronic form beyond the usual emails and scanned documents.

    Today, tweets on Twitter, status postings in Facebook, and discussion forumpostings on LinkedIn are all discoverable information to the same extent as

    emails and text messages. While these messages are often shorter than traditional

    emails, they create problems precisely because they are shorter and thus require

    more explanation. Companies with electronic document retention policies must

  • 8/14/2019 legal final report socila media .docx

    23/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    ensure that these communications are also explicitly included as corporate

    property.

    6) Dynamic Information

    Another aspect of some forms of social media, such as Wikipedia, is that content

    can be edited by almost anyone. Recently, Wikipedia has tested a flagged

    revision program for entries about living peoplein these cases, changes must

    be approved before they are posted. It remains uncertain whether this policy will

    be applied to corporate entries. Also, companies must be aware that employees

    or other interested parties may change entries to remove unfavorable

    information, or, even more worrisome, to add untrue unfavorable information.

    In addition, it may be possible for third parties to identify when a company

    employee makes a change to a Wikipedia entry about the company for

    example, to remove or alter references to an unfavorable lawsuit outcome

    which could lead to more bad publicity than the original entry might have

    garnered.

    7) Human Resources Issues

    It is becoming increasingly common for company HR departments to review the

    Facebook, LinkedIn, and other social media pages of both job candidates and

    current employees. While this practice can be useful to help make hiring

    decisions, companies must ensure that their hiring and retention practices do not

    unlawfully discriminate based on information available through suchcandidates and employees social media pages. In addition, professional social

    media sites such as LinkedIn offer the opportunity for people to write

    recommendations for others in their networks. While this can be beneficial to the

  • 8/14/2019 legal final report socila media .docx

    24/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    subject of the recommendation, there are two considerations for supervisors to

    keep in mind when writing recommendations for their employees:

    (1) a good recommendation can later make it difficult for a company to defend

    against a claim of wrongful termination; and (2) a negative recommendation may

    result in discrimination, defamation, or workplace retaliation claims.

    8) Securities

    Businesses with an Internet presence must be vigilant to ensure that securities

    laws and regulations are not violated. While this clearly applies to company-

    managed websites and blogs, it also means that employees and executives need

    to be careful about what they say in other forums, including on Twitter or third-

    party message boards. The CEO of Whole Foods was taken to task for a series of

    message board postings he had made under a pseudonym, talking down his

    companys competitor, Wild Oats. When Whole Foods later acquired Wild Oats,

    the SEC investigated to determine whether his postings had been an illegal

    attempt to affect Wild Oatss stock price. While the SEC ultimately took no action

    against him or Whole Foods, the incident demonstrates how careful companies

    and their executives and employees must be.

    9) Privacy/Publicity

    Just as third-party materials posted to a social media site may infringe copyright

    or trademarks, or disclose confidential information, posting photographs and

    video without proper releases may violate the privacy or publicity rights of

    individuals. In addition, companies in certain industries, particularly health care,

    must ensure that their employees do not violate specific privacy regulations (e.g.,

    HIPAA) in their activities on social media sites. Even a seemingly innocuous

  • 8/14/2019 legal final report socila media .docx

    25/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Twitter comment about a patients condition could be a violation. In another

    area, a woman has sued two debt collection agencies for violations of the Fair

    Debt Collection Act after they posted information to her Myspace page about her

    debts.

    10) Endorsements

    The FTC has recently issued new rules requiring bloggers and other users of

    social media to disclose any paid endorsements. This means that bloggers who

    receive compensation for discussing a product or service must disclose that their

    comments are paid; but it could also apply, for example, to someone who

    receives free nights from a hotel and then Twitters about how great the hotel is.

    Similarly, employees who truly love their companys offerings and tweet about

    them or discuss them on message boards are supposed to disclose that they are

    employed by the company. While the FTC is unlikely to pursue individual

    bloggers or tweeters with small followings, those with wider exposure may come

    under scrutiny, and the FTC has said that its primary purpose is to keep

    companies in line.

    To sum up, social networking provides a new set of tools companies can use to

    enhance their business, but as always, there are risks. However, with some

    forethought and attention, a company can minimize or avoid legal trouble and

    make those tools more effective

  • 8/14/2019 legal final report socila media .docx

    26/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    3.4 Brief overview of Viacom & Youtube

    Figure 4 : youtube vs viacom

    3.4 Youtube

    YouTube is avideo-sharing website, created by three formerPayPal employees

    in February 2005 and owned byGoogle since late 2006, on which users can

    upload, view and share videos. The company is based inSan Bruno, California,

    and usesAdobe Flash Video andHTML5technology to display a wide variety

    ofuser-generated video content, including movieclips, TV clips, andmusic

    http://en.wikipedia.org/wiki/Video_hosting_servicehttp://en.wikipedia.org/wiki/PayPalhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/San_Bruno,_Californiahttp://en.wikipedia.org/wiki/Flash_Videohttp://en.wikipedia.org/wiki/HTML5http://en.wikipedia.org/wiki/User-generated_contenthttp://en.wikipedia.org/wiki/Video_cliphttp://en.wikipedia.org/wiki/Music_videohttp://en.wikipedia.org/wiki/Music_videohttp://en.wikipedia.org/wiki/Video_cliphttp://en.wikipedia.org/wiki/User-generated_contenthttp://en.wikipedia.org/wiki/HTML5http://en.wikipedia.org/wiki/Flash_Videohttp://en.wikipedia.org/wiki/San_Bruno,_Californiahttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/PayPalhttp://en.wikipedia.org/wiki/Video_hosting_service
  • 8/14/2019 legal final report socila media .docx

    27/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    videos,as well as amateur content such asvideo blogging,short original videos,

    and educational videos.

    Most of the content on YouTube has been uploaded by individuals, although

    media corporations includingCBS,theBBC,Vevo,Hulu,and other organizations

    offer some of their material via the site, as part of the YouTube partnership

    program. Unregistered users can watch videos, while registered users can

    upload an unlimited number of videos. Videos considered to contain potentially

    offensive content are available only to registered users at least 18 years old.

    YouTube, LLC was bought byGoogle for US$1.65 billion in November 2006 and

    now operates as a Googlesubsidiary.

    The stats about the Youtube

    YouTube

    Type Subsidiary ofGoogle,limited

    liability company

    Foundation

    date

    February 14, 2005

    Headquarters 901 Cherry Ave,San Bruno,

    California, United States

    Launched 14 February 2005

    http://en.wikipedia.org/wiki/Music_videohttp://en.wikipedia.org/wiki/Video_bloghttp://en.wikipedia.org/wiki/CBShttp://en.wikipedia.org/wiki/BBChttp://en.wikipedia.org/wiki/Vevohttp://en.wikipedia.org/wiki/Huluhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Limited_liability_companyhttp://en.wikipedia.org/wiki/Limited_liability_companyhttp://en.wikipedia.org/wiki/Headquartershttp://en.wikipedia.org/wiki/San_Bruno,_Californiahttp://en.wikipedia.org/wiki/File:Logo_Youtube.svghttp://en.wikipedia.org/wiki/San_Bruno,_Californiahttp://en.wikipedia.org/wiki/Headquartershttp://en.wikipedia.org/wiki/Limited_liability_companyhttp://en.wikipedia.org/wiki/Limited_liability_companyhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Huluhttp://en.wikipedia.org/wiki/Vevohttp://en.wikipedia.org/wiki/BBChttp://en.wikipedia.org/wiki/CBShttp://en.wikipedia.org/wiki/Video_bloghttp://en.wikipedia.org/wiki/Music_videohttp://en.wikipedia.org/wiki/File:Logo_Youtube.svg
  • 8/14/2019 legal final report socila media .docx

    28/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    CEO Salar Kamangar

    Industry Internet

    Slogan(s) Broadcast Yourself .

    Alexa rank 3

    Table 1 : Youtube Stats

    3.5 Brief overview of Viacom

    Viacom Inc., short for "Video & Audio Communications", is an American

    globalmass media company with interests primarily in, but not limited to,

    cinema and cable television. As of 2010, it was the world's fourth-largest media

    conglomerate, behindThe Walt Disney Company,Time Warner and News

    Corporation .Viacom is owned in majority byNational Amusements, Inc., a

    privately owned theater company based in Dedham, Massachusetts,

    USA.National Amusements holds another controlling stake inCBS Corporation.

    The current Viacom was created on December 31, 2005, as a spinoff from CBS

    Corporation, whichchanged its name fromViacom to CBS at the same time. CBS,

    not Viacom, retains control of the over-the-air broadcasting, TV

    production,outdoor advertising, subscription pay television (Showtime) and

    publishing assets (Simon & Schuster) formerly owned by the larger company.

    However,Sumner Redstone through National Amusements, retains majority

    control of Viacom. Predecessor firms of Viacom includeGulf Western, which

    later became Paramount Communications Inc., andWestinghouse Electric

    Corporation.

    http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Alexa_Internethttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/The_Walt_Disney_Companyhttp://en.wikipedia.org/wiki/Time_Warnerhttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/National_Amusementshttp://en.wikipedia.org/wiki/CBS_Corporationhttp://en.wikipedia.org/wiki/Company_renaminghttp://en.wikipedia.org/wiki/Viacom_(1971%E2%80%932005)http://en.wikipedia.org/wiki/CBS_Outdoorhttp://en.wikipedia.org/wiki/Showtime_Networkshttp://en.wikipedia.org/wiki/Simon_%26_Schusterhttp://en.wikipedia.org/wiki/Sumner_Redstonehttp://en.wikipedia.org/wiki/Gulf_and_Western_Industrieshttp://en.wikipedia.org/wiki/Westinghouse_Electric_(1886)http://en.wikipedia.org/wiki/Westinghouse_Electric_(1886)http://en.wikipedia.org/wiki/Westinghouse_Electric_(1886)http://en.wikipedia.org/wiki/Westinghouse_Electric_(1886)http://en.wikipedia.org/wiki/Gulf_and_Western_Industrieshttp://en.wikipedia.org/wiki/Sumner_Redstonehttp://en.wikipedia.org/wiki/Simon_%26_Schusterhttp://en.wikipedia.org/wiki/Showtime_Networkshttp://en.wikipedia.org/wiki/CBS_Outdoorhttp://en.wikipedia.org/wiki/Viacom_(1971%E2%80%932005)http://en.wikipedia.org/wiki/Company_renaminghttp://en.wikipedia.org/wiki/CBS_Corporationhttp://en.wikipedia.org/wiki/National_Amusementshttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/Time_Warnerhttp://en.wikipedia.org/wiki/The_Walt_Disney_Companyhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Alexa_Internethttp://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Industry
  • 8/14/2019 legal final report socila media .docx

    29/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Comprising BET Networks, MTV Networks, and Paramount Pictures, Viacom

    operates approximately 170 networks reaching approximately 700 million

    subscribers in 160 countries.

    Stats and information about Viacom :

    Viacom Inc.

    Type Public

    Industry Mass media

    Founded January 3, 2006

    Headquarters New York City, New York, United States

    Area served Worldwide

    CEO Philippe P. Dauman

    (President & CEO)

    http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/File:Viacom_logo.svghttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/File:Viacom_logo.svg
  • 8/14/2019 legal final report socila media .docx

    30/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Products Cable television, broadcasting, radio, publishing, movies,

    andweb portals

    Revenue US$ 13.887 billion (2012)

    Table 2 : Viacom stats

    Chapter 4 : Company Structure

    4.1 Youtube Company Structure

    The Youtube is a susidary of the google and opeartes as an independent

    company Youtube LLC. Youtubes CEO is Salar Kamangar and rest of the

    directors are from Google

    http://en.wikipedia.org/wiki/Web_portalhttp://en.wikipedia.org/wiki/Web_portal
  • 8/14/2019 legal final report socila media .docx

    31/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Fig 5 : Youtube board of directors

    4.2 Viacom Company Structure

    Viacom is a public compnay with revenues more than $14 billion in 2012 , the

    structure of the company is given below:

    Salar Kamangar (CEO)

    Ann Mather(Independent Director)

    Paul otteni(Independent Director)

    Shirley Tighman(Independent Director)

    Seregy Brin

    (Executive director)

  • 8/14/2019 legal final report socila media .docx

    32/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    Figure 6 : Viacom board of directors

    5.Policy , legal and contractual Framework

    Sumner redstone

    (Chairman of the board)

    Robert kraft

    (Director) Christiana sorrell (Director)

    Alan Greenberg,

    Independent director

    William Schwartz,

    independent director Thomas Dooley , COO George Abrams, Director

    Phillipe P. Dauman

    (CEO)

  • 8/14/2019 legal final report socila media .docx

    33/138

    LEGAL ASPECTS IN SOCIAL MEDIA| Setu Sharma (SMBA12030

    5.1 Sector legislation

    Legislative Renewal

    Justice William O. Douglas wrote of his 36 years on the U.S. Supreme Court that

    security can only be achieved through constant change, through discarding old

    ideas that have outlived their usefulness and adapting others to current fact s.