Apple co-founder Steve Wozniak has achieved a significant legal victory in his ongoing battle against YouTube over the unauthorized use of his likeness in a Bitcoin scam. A San Jose appeals court recently overturned a previous judgment that had absolved YouTube of any responsibility in the matter.
The appeals court ruled that YouTube cannot invoke a controversial communications statute to evade liability for a fraudulent scheme that exploited Wozniak’s popularity. The doctored videos in question were used to deceive viewers into participating in a Bitcoin scam.
This latest verdict allows Wozniak to proceed with his lawsuit against YouTube, potentially leading to changes in federal law regarding the liability of video streaming platforms. These changes could affect platforms like YouTube, which are currently shielded from liability under Section 230 of the Communications Decency Act.
Wozniak, along with several other prominent figures including Bill Gates and Elon Musk, filed the lawsuit against YouTube and its parent company, Google, in 2020. The lawsuit stemmed from doctored videos spreading a fake Bitcoin giveaway scam on the platform.
The appeals court judges noted instances where popular YouTube channels were compromised to promote scams. They found that Google and YouTube contributed to the scam by providing verification badges to hijacked channels and failing to remove these badges when the channels began posting fraudulent content.
According to Wozniak’s lawyer, Joe Cotchett, the verdict underscores the importance of social media platforms like Google and YouTube taking responsibility for their actions. Cotchett emphasized that platforms cannot use Section 230 immunity as a complete shield for their conduct.
This ruling marks a significant milestone in Wozniak’s legal battle and could have far-reaching implications for the accountability of social media platforms in cases involving fraudulent activities facilitated through their services.
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