Thursday, February 11, 2010

Despite beating UMG in the frivolous case it brought, Veoh has to close its doors

The litigious UMG Recordings has succeeded in shutting the doors of a competitor by bringing a frivolous lawsuit against Veoh, and losing. But apparently the drain of the lawsuit caused the startup to fail:

Veoh Closing Down, UMG Lawsuit Blamed (


Commentary & discussion:

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Unnullifier said...

Given that Veoh's user-base was pretty nonexistent, it was really more a matter of a bucket that not only had lawsuit holes poked in its bottom, but the flow from the income tap above it was turned off.

While I'm not a fan of the progress hampering IP litigation that plagues the legal system these days, I don't think it's 100% accurate to claim that only the lawsuit caused Veoh to fail.

Anonymous said...

While it's convenient to blame Universal to further the agenda of your site, perhaps in the interest of journalistic integrity, you'd like to make mention of the fact that Veoh, like all other failed dot-coms, was terribly run. According to the Wall Street Journal, Veoh was blowing $4 million a month on its bloated staff and infrastructure alone, without the sales or contracts to support such expenditures. Lawsuit or not, Veoh's demise was of its own doing.

-Thor, God of Thunder.