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Here is an article from SF Gate.

“A federal judge dismissed Viacom Inc.’s landmark copyright lawsuit against YouTube on Wednesday, a major victory that potentially reinforces legal protections for a wide array of online companies.

The decision doesn’t necessarily spell the end of a legal drama that’s already played out for more than three years, because the New York media giant promptly promised to appeal the decision. If ultimately upheld, it may also make it more difficult for content creators to protect their work in the digital era.

The $1 billion suit was widely viewed as a test case for the safe harbor provisions of the Digital Millennium Copyright Act of 1998. The law states that Internet sites, hosts and providers generally aren’t legally liable for the behavior of their users, as long as they remove infringing or illegal content when properly notified.

In this case, YouTube users allegedly uploaded tens of thousands of unauthorized copyrighted clips from Viacom-owned television shows like “The Colbert Report” and “South Park.” The owner of MTV and Comedy Central sued YouTube in March 2007, arguing that the San Bruno company knew the clips were posted without permission and failed to take them down.

In court filings, Viacom argued that YouTube fueled its meteoric rise by fostering piracy, and cited a series of e-mails that suggested its co-founders were well aware of copyrighted material on the site. Largely because of YouTube’s rapid growth, Google Inc. bought the company less than a year after it was formed for $1.65 billion.

Obligations met

In the 30-page summary judgment issued Wednesday, however, Judge Louis Stanton of the U.S. District Court for the Southern District of New York rejected Viacom’s argument that YouTube had an obligation to remove material because of a “general awareness” that unauthorized content was posted on its site. He said the protections of the digital copyright act aren’t dependent on a publisher monitoring its service, as long as it responds appropriately when notified of copyrighted content by rights holders.

He added that YouTube had met these obligations, noting that when Viacom asked that it take down about 100,000 videos in early 2007, virtually all of them were removed by the next business day.

In granting YouTube’s motion for summary judgment, Stanton essentially said Viacom’s legal arguments were too weak for a trial to proceed.

“In the main, it’s a victory for innovation,” said Jennifer Urban, director of the Samuelson Law, Technology & Public Policy Clinic at UC Berkeley. “It’s a victory for the companies that are creating new kinds of technologies … that allow people to speak and create on the Internet.”

She added that it clearly places the onus on content owners to track and request the removal of unauthorized uses of their works, which is precisely what worries many media companies. Monitoring the Internet for infringing uses of large catalogs of movies, television shows and music is an enormous and never-ending challenge.

“We believe that this ruling by the lower court is fundamentally flawed and contrary to the language of the Digital Millennium Copyright Act, the intent of Congress, and the views of the Supreme Court as expressed in its most recent decisions,” Viacom said. “We intend to seek to have these issues before the U.S. Court of Appeals for the Second Circuit as soon as possible.”

Content partnerships

Since the case was filed, YouTube has entered a series of partnerships with major content companies. It appeased them largely by building a sophisticated tool that detects and identifies copyrighted media.

The Viacom suit covered content on the site only before the Content ID tool was put in place in late 2007. The media company participated in tests of the system, providing thousands of content files, according to documents that were unsealed in the course of the lawsuit.”

Read more here.

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Gerbsman Partners has been involved with numerous national and international equity sponsors, senior/junior lenders, investment banks and equipment lessors in the restructuring or termination of various Balance Sheet issues for their technology, life science, medical device and cleantech portfolio companies. These companies were not necessarily in Crisis, had CASH (in some cases significant CASH) and/or investor groups that were about to provide additional funding. In order stabilize their go forward plan and maximize CASH resources for future growth, there was a specific need to address the Balance Sheet and Contingent Liability issues as soon as possible.

Some of the areas in which Gerbsman Partners has assisted these companies have been in the termination, restructuring and/or reduction of:

  • Prohibitive executory real estate leases, computer and hardware related leases and senior/sub-debt obligations – Gerbsman Partners was the “Innovator” in creating strategies to terminate or restructure prohibitive real estate leases, computer and hardware related leases and senior and sub-debt obligations. To date, Gerbsman Partners has terminated or restructured over $790 million of such obligations. These were a mixture of both public and private companies, and allowed the restructured company to return to a path of financial viability.
  • Accounts/Trade payable obligations – Companies in a crisis, turnaround or restructuring situation typically have accounts and trade payable obligations that become prohibitive for the viability of the company on a go forward basis. Gerbsman Partners has successfully negotiated mutually beneficial restructurings that allowed all parties to maximize enterprise value based on the reality and practicality of the situation.
  • Software and technology related licenses – As per the above, software and technology related licenses need to be restructured/terminated in order for additional capital to be invested in restructured companies. Gerbsman Partners has a significant track record in this area.

Date Certain M&A Process

Gerbsman Partners developed its proprietary “Date Certain M&A Process” in 2002. Since that time, the process has evolved into a 6-8 week time frame vehicle for maximizing enterprise and asset value for under-performing venture capital and senior lender backed medical device, life science and technology Intellectual Property based companies. To date, Gerbsman Partners has maximized enterprise and asset value for over 60 of these companies. A description of this proven process can be reviewed on the Gerbsman Partners website.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 60 Technology, Life Science and Medical Device companies and their Intellectual Property, through its proprietary “Date Certain M&A Process” and has restructured/terminated over $790 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington, DC, Alexandria, VA, San Francisco, Europe and Israel.

For additional information please visit www.gerbsmanpartners.com

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Here is a good article from Financial Times.

In January 2000, as Steve Case unveiled the all-stock $164bn merger between AOL and Time Warner, the AOL chief executive declared it an historic moment that would transform the competitive landscape of the media business and the way people used the internet forever.

A decade later, the “deal of the century” is not only being unwound but is widely castigated as an example of the chief executive hubris that characterised a period when the worldwide value of deals exceeded $3,500bn and bankers briefly gained celebrity status but ended with their reputation in tatters.

Daniel Stillit , mergers and acquisitions analyst at UBSsays: “The decade opened at the high point of a merger wave. It’s ending at the low point”.

The new millennium began just as the US stock market was wrapping up its fifth consecutive year of double-digit gains and the rapid growth of the technology industry had started to ebb.

The urge to merge was driven by globalisation, deregulation, the need to reduce costs and the desire to gain critical mass – not to mention chief executives’ penchant for empire-building. Bigger was not only better, boards felt, but was necessary if companies were to compete and survive on the global stage.”

Read the full article here.

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Gerbsman Partners has been involved with numerous national and international equity sponsors, senior/junior lenders, investment banks and equipment lessors in the restructuring or termination of various Balance Sheet issues for their portfolio companies. These companies were not necessarily in Crisis, had CASH (in some cases significant CASH) and/or investor groups that were about to provide additional funding. In order stabilize their go forward plan and maximize CASH resources for future growth, there was a specific need to address the Balance Sheet and Contingent Liability issues as soon as possible.

Some of the areas in which Gerbsman Partners has assisted these companies have been in the termination, restructuring and/or reduction of:

  • Prohibitive executory real estate leases, computer and hardware related leases and senior sub-debt obligations – Gerbsman Partners was the “Innovator” in creating strategies to terminate or restructure prohibitive real estate leases, computer and hardware related leases and senior and sub-debt obligations. To date, Gerbsman Partners has terminated or restructured over $790 million of such obligations. These 77 deals were a mixture of both public and private companies, and allowed the restructured company to return to a path of financial viability.
  • Accounts Trade payable obligations – Companies in a crisis, turnaround or restructuring situation typically have accounts and trade payable obligations that become prohibitive for the viability of the company on a go forward basis. Gerbsman Partners has successfully negotiated mutually beneficial restructurings that allowed all parties to maximize enterprise value based on the reality and practicality of the situation.

Date Certain M&A Process

Gerbsman Partners developed its proprietary “Date Certain M&A Process” in 2002. Since that time, the process has evolved into a 6 week plus time frame vehicle for maximizing enterprise and asset value for under-performing venture capital and senior lender backed medical device, life science and technology Intellectual Property based companies. To date, Gerbsman Partners has maximized enterprise and asset value for 60 portfolio companies. A description of this proven process can be reviewed on the Gerbsman Partners website.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 60 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $790 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington, DC, Alexandria, VA, San Francisco, Europe and Israel.

For additional information please visit Gerbsman Partners website.

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By Ronald H. Coelyn, Founding Managing Partner – The Coelyn Group

I recently read an article in a major newspaper purporting to give advice about recruiting executive talent in today’s extremely challenging economic climate.  Frankly, the advice given by these so-called experts in both print and broadcast media is unsubstantiated nonsense and very misleading – giving the distinct impression that their stories represent the “real” world.  It doesn’t work that way!

Myth 1 – Hiring only the “employed” in the current economy: The theory behind this statement is that unemployed executives are not as qualified as those who are employed.  This tried and “true” belief is untrue – most especially today.  In more than 23-years of executive search consulting I’ve never seen so many exemplary candidates become available through no fault of their own.  My firm would and has presented “A” player candidates who were currently between assignments.

Myth 2 – Age matters; don’t hire candidates in the third third of their career: This statement basically says that executives have about a 45-year career timeframe (from age 21 to age 65) prior to retirement.  But in reality, health, energy, passion and desire are the key components in evaluating a candidate of any age. More to the point, recent studies have shown that the average stay for a senior level executive is 2.3 years (reflecting the challenges of senior management, M&A activity, etc.). So hiring someone with perhaps 15 or more years left in their career, or even 3-4 years, should never be a problem.  And I would seriously consider candidates beyond age 65 assuming they have the aforementioned energy, etc.

Myth 3 – Wealthy executives don’t want to work anymore: they can’t be motivated: Clearly, this is an individual decision and many executives who have become independently wealthy elect to retire.  But I have personally come to know a great many such fortunate executives who have decided to continue their business careers. They just love the process, the thrill of competition and the realization that their contributions are truly important to society.

A perfect example is the venture capitalists.  As a group these creative leaders have often amassed considerable wealth and yet they “remain steadfastly in the game.”  And notwithstanding the current economic crisis which is impacting their sector we all know that they will come back strong, albeit perhaps with a different model for conducting business – but raise new funds and invest they will.  Of that, you can be certain.

Ronald H. Coelyn – Founding Managing Partner, The Coelyn Group
Ron is the Founding Partner of The Coelyn Group which specializes in Healthcare and Life Sciences. For the past 17 of his 30-year career, he has been active in these industries as a senior executive officer and, most recently, as an executive search consultant (both as a Founder of this Firm and as a Partner in the prestigious international executive search firm SpencerStuart). His executive search consulting practice spans engagements ranging from Chairman of The Board, Members of The Board of Directors, President & Chief Executive Officer to a variety of Vice Presidential and other senior level executive positions.

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