Google denies YouTube legal slushfund

Posted by Humphrey Cheung

Google CEO Eric Schmidt denied Internet rumors that the company has put $500 million away in a legal slushfund. The fund was supposedly to fend off piracy and copyright claims from movie and other media companies over unauthorized videos on YouTube.

Schmidt gave this denial while speaking at the Web 2.0 Summit. Mark Cuban started the rumor of the slushfund after posting it on his "Blog Maverick" site. He said a trusted source told him about the fund.

Schmidt did say that Google is meeting with media companies to iron out their differences.