Google has a delicate relationship with Hollywood and media companies, as evidenced by many of their feelings about YouTube. But the issues go beyond its own efforts, as now a group of media companies are irked with Google because they say it benefits from film piracy. This has nothing to do with their copyrighted content that turns up on YouTube, but rather because Google sold ads to some guys running a website that sold some shady software to help people find movies to download from P2P networks. The allegations that Google's somehow responsible for furthering piracy by selling ads for these sites are a bit tenuous, but given the frosty relationship with media companies, it's not surprising to see that Google's decided to instill some more controls on ads it sells, particularly for keywords leading to sites like these. These sorts of issues will become more prevalent for Google as it looks to build up things like YouTube and Google Video, and the media companies fail to see the benefits they deliver and focus instead on feeling exploited and abused by them. But Google's set the precedent of making deals with copyright holders, giving Hollywood the expectation that it gets to decide what is and isn't acceptable for Google to do, and determining just how much it's going to cost them.
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