KEY POINTS
Steve Wozniak, the co-founder of Apple, recently emerged victorious in an ongoing legal skirmish with YouTube. The dispute centers around manipulated videos that used Wozniak’s image to promote a Bitcoin scam back in 2020.
Appellate Court Overturns Prior Ruling
An appellate court has now overturned a prior ruling that had cleared YouTube of accountability. The decision from the San Jose appellate court challenges YouTube’s reliance on a controversial communications law to dodge liability for the fraudulent scheme that misused Wozniak’s fame.
In 2020, Wozniak, alongside notable figures such as Bill Gates, Elon Musk, and Michael Dell, initiated legal proceedings against YouTube and its parent entity, Google. This action followed the widespread circulation of altered videos on YouTube, which falsely advertised a cryptocurrency giveaway.
These tampered videos lured viewers with the promise of free Bitcoin if they sent cryptocurrency to a specified address, claiming they would receive twice the amount in return. The appellate court’s ruling is a landmark victory for Wozniak and his co-plaintiffs.
Judges Believe Google and YouTube Played a Role in the Scam
It contrasts sharply with a 2022 decision by a Santa Clara County Superior Court judge, who had deemed the tech giants immune from liability under Section 230 of the Communications Decency Act. Judges from the appellate court noted that scammers frequently compromise popular YouTube channels to disseminate fraudulent content.
They pointed out that Google and YouTube played a role in perpetuating the scam by issuing verification badges to compromised channels. The appellate court’s observations suggest that such companies might not enjoy the protections of Section 230 immunity if they are found to be complicit in the scams they verify.
