Online video site Veoh has unhappy ending
Internet video site Veoh has announced it is going into liquidation. The company failed despite an input of $70 million from investors.
Co-founder Dmitry Shapiro said the company would file for Chapter 7 protection. That’s a bankruptcy format used when the company expects to shut down completely.
Writing about the closure, Shapiro spoke of his pride at having helped establish a firm (Veoh) which brought full-length video to a mass online audience. That’s a reference to rivals YouTube which historically concentrated on short clips. He also noted Veoh’s courtroom triumph over Universal Music Group in a copyright dispute.
In that case, Veoh used the well-established defense that it could not be held responsible for infringing clips uploaded by users as long as it took down offending clips immediately after a complaint by the copyright holder. UMG argued unsuccessfully that in the process of converting clips to Flash format, Veoh was effectively republishing the content and thus became directly responsible for it.
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