A few months ago, the user-generated website Veoh successfully persuaded a judge that the website's take-down policies combined with section 512(c) of the Digital Millennium Copyright Act gave it "safe harbor" from liability.
Last week, Veoh won a preliminary motion against Universal Music Group, which also is trying to claim that Veoh should be held liable for infringing works on their website.
However, the court reserved the right to later decide the much larger issue of the ultimate applicability of 512(c) to this case. The court rejected arguments that various activities, including automatically creating different copies after an upload and allowing users to access uploaded videos via streaming or full download, disqualify Veoh from asserting the "safe harbor" defense.
It is unclear whether the Veoh cases will have a material effect on the ongoing Viacom-YouTube dispute. Some opinions suggest that the Veoh decisions could potentially put the pressure on Viacom to get a victory.