Viacom has had it -- sues Google for $1 billion

It seems that Viacom Inc. (NYSE:VIA) has had it. After the media conglomerate had asked Google Inc. (NASDAQ:GOOG) -- very nicely too -- to remove some 100,000 clips from its recently purchased video-sharing site YouTube, it is now saying: no more!

As Beth Gaston Moon mentioned, Viacom is now suing Google for more than $1 billion in damages over these unauthorized clips and the use of its programming online. Viacom also seeks an injunction to prevent future and further violations.

Many have worried that with Google's deep pockets, this is exactly what would happen once the company purchased YouTube. While some saw dollar signs from potential advertising revenue on the popular video-sharing site, others were concerned with the blatant copyright infringements.

The original number of 100,000 clips Viacom claimed in the past it asked Google to remove is now in the neighborhood of 160,000. These were viewed more than 1.5 million times.

Google is used to providing everything for free. In fact, this is its business model -- offer free products, increase traffic and then benefit from the advertising. This model is fine as long as Google offers its own products for free. Once it offers others', it becomes a different -- and potentially hazardous -- story.

GOOG shares are down over 2% to $445.53, while VIA shares are up nearly 1.2% to $40.03. It seems investors have already decided which way this one goes.