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Business

YouTube outduels Viacom

The geeks have emerged victorious in the battle between old and new media.

In a move that will have a far-reaching impact on how Web sites use copyrighted material, a judge yesterday tossed out a lawsuit by Viacom seeking $1 billion in damages from YouTube and its owner, Google. The New York-based old media giant claimed YouTube knowingly pilfered its videos.

Viacom, which owns Nickelodeon and Comedy Central, sued in 2007, alleging the video start-up built its business on “a policy of willful blindness” by looking the other way when it came to illegal downloads of Viacom-owned videos, such as the popular “South Park.”

But Manhattan federal Judge Louis Stanton sided with YouTube’s claims that it was in full compliance with current law because it agreed to remove videos once alerted that they had been uploaded without permission. Viacom said it plans to appeal.