Msg#: 3156562 posted 8:54 pm on Nov 14, 2006 (gmt 0)
SAN FRANCISCO (MarketWatch) -- Google Inc. has set aside about $187.5 million of the approximately $1.65 billion it's paying for video-sharing site YouTube Inc. for unspecified current or future losses, it said Tuesday.
The language in a Google statement, which also discloses the deal has been closed, only describes the funds as being earmarked for "certain indemnification obligations."
While the language is very general, it does hint broadly that the money to be held in escrow for the next 12 months is meant to cover expenses related to copyright-infringement lawsuits, or content licensing fees YouTube already has agreed to pay, or may be forced to pay, in the future.
YouTube has angered many in the entertainment industry for letting users freely upload material without the appropriate OKs. In many ways, the extensive amount of pirated material available on the site is both YouTube's biggest problem and its biggest draw.