LUCKNOW (CoinChapter.com) — Apple co-founder Steve Wozniak has won a legal case against tech giants YouTube and its parent company, Alphabet. The case centers around a fraudulent Bitcoin scam that unscrupulously exploited Wozniak’s likeness and reputation. The recent appeals court ruling overturned a previous lower court judgment that had absolved YouTube of any responsibility.
Background Of The Case
The case dates back to 2020, when doctored videos surfaced on YouTube. The video featured people resembling Wozniak to promote a fake Bitcoin giveaway scam. Additionally, it asked viewers to send their cryptocurrency to a specific address, promising to receive double the amount in return.
Wozniak is not alone in his quest for justice. The lawsuit bears the signatures of 17 other high-profile individuals similarly victimized by the Bitcoin scam. Among the co-plaintiffs are notable figures such as Microsoft co-founder Bill Gates, Tesla and SpaceX CEO Elon Musk, and Dell founder Michael Dell.
They all filed lawsuits against YouTube and Google, alleging their involvement in the fraudulent scheme. However, a Santa Clara County Superior Court judge initially ruled in 2022 that Section 230 of the Communications Decency Act protects companies from liability. This contentious federal law shields online platforms from legal consequences for user-generated content.
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Appeals Court Overturns Previous Ruling in Wozniak’s Favor
The recent decision by the San Jose appeals court has now overruled that judgment, allowing Wozniak’s lawsuit to proceed. The appeals court judges found that YouTube cannot rely on Section 230 immunity as the platform had “materially contributed” to the scam by verifying the hijacked channels used in the fraud. It failed to remove the verification badges even after they started posting scam videos.
After winning this round, Apple’s co-founder can now proceed with his lawsuit against YouTube. Moreover, Wozniak’s legal pursuit could potentially catalyze a shift in federal law. Current legislation shields video-streaming platforms from liability for content uploaded by users, granting them legal immunity in such cases.
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A verification badge next to a YouTube channel’s name signifies that the platform has authenticated its legitimacy. The company has made it clear that it will refrain from verifying channels that attempt to impersonate creators or brands. A verified channel serves as the official online presence of a creator, artist, company, or public figure, and a verification badge ensures its credibility and authority.
However, plaintiffs alleged that YouTube was aware of specific channels being hijacked but failed to remove their verification badges. Allegedly, in at least one case, YouTube even issued a verification badge to a channel actively engaged in perpetrating a scam, according to the claims made by the plaintiffs.
Joe Cotchett, Wozniak’s lawyer, sees the verdict as a significant step towards holding social media platforms like Google and YouTube accountable for their actions. He said they “cannot use Section 230 as a total shield for their conduct.”