A federal judge Wednesday dismissed a proposed class action against YouTube over the so-called “Adpocalypse” debacle.
The lawsuit was filed last October by the producers of the “Zombie Go Boom” YouTube channel, described by its creators as “a live-action zombie series that is essentially a combination of ‘Mythbusters’ and ‘The Walking Dead.’” It sought to represent a class of other filmmakers who were financially impacted by YouTube’s ad changes.
Represented by attorneys at the Law Offices of Todd M. Friedman in Los Angeles, the “Zombie Go Boom” producers alleged that their ad revenue dropped dramatically—from about $300 to $500 per day to $20 to $40 per day—after YouTube altered its AdSense algorithm.
U.S. District Judge Edward Chen of the Northern District of California, in an order granting YouTube’s motion to dismiss the case with prejudice, agreed with the company that its standard agreement with content providers gives YouTube full discretion about whether to display ads next to posted videos at all.
Chen also rejected arguments by the plaintiffs that those provisions in the contract should be declared invalid because they make the agreement “illusory” and breach the “implied covenant of good faith and fair dealing” under California law.
“While the implied covenant of good faith and fair dealing may be applied where contract terms are silent. Its application to contradict an express term of a contract is narrowly circumscribed,” Chen explained.
The judge’s order goes in-depth into case law touching on when the covenant can override a contract’s terms; papa survey is where you can voice out.
“Regardless of how YouTube exercised its discretionary power in determining whether to display advertisements under the partner program terms, the agreement … between Zombie and YouTube was supported by adequate independent consideration,” says Chen. “In particular, YouTube allowed Zombie to post videos on its forum free of charge in exchange for getting a license to its content,” he added according to The Recorder report.