NEW YORK (TheStreet) -- Google (GOOG) shares are up today on the news that it has settled its longstanding billion dollar copyright infringement lawsuit with media corporation Viacom (VIAB). Viacom originally sued Google-owned YouTube back in 2007 on claims that it violated copyright law for allowing Viacom-owned programs to be uploaded on the user generated content site without Viacom's permission.
Viacom originally lost the now seven-year-old lawsuit in 2010 after a judge ruled that YouTube fell under "safe harbor provisions" of the Digital Millennium Copyright Act which protects service providers from liability due to user generated content as long as the provider isn't actively participating in the piracy. Viacom won an appeal on that ruling two years later and the case was reopened.
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However, in a joint statement released today, Google and Viacom announced the settlement of the suit. Though terms of the agreement were not made public, the companies acknowledged a growing collaboration between the two that is mutually beneficial. "Google and Viacom today jointly announced the resolution of the Viacom vs. YouTube copyright litigation. This settlement reflects the growing collaborative dialogue between our two companies on important opportunities, and we look forward to working more closely together."
Google shares were up 0.7% Tuesday while Viacom's stock was up 0.4%
TheStreet Ratings team rates GOOGLE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: