Is Google Really Getting Rich Off Piracy?
The “Google is in bed with the pirates” theory is hardly new and is often aired by publishers and copyright lawyers. It has bubbled up again in the last two weeks as a debate rages in Washington over the controversial Stop Online Piracy Act (SOPA). So how much money Google is making from the hundreds of “rogue” websites worldwide that flog everything from fake NFL jerseys to pirated versions of Hollywood blockbusters?
For those unfamiliar with Google’s business model, the company makes nearly all of its money in one of two ways. The first is by using auctions to sell keywords like “flowers” or “personal injury lawyer” to companies whose ads appear when a user searches those terms. The other way the company makes money is through its AdSense program which helps website owners place ads on their site. In return, Google gets a cut of the ad revenue. This means Google could (in theory) make money by selling keywords like “football” to companies that want to advertise that they have counterfeit Cowboys jerseys for sale. In fact, earlier this year, the company paid a huge fine for letting Canadian pharmacies buy keywords to advertise drugs without a prescription. But the pharmacy episode appears to be a one-off blunder. There is no evidence that Google has a habit of selling keywords to shady partners. A Google spokesperson said by email that the company has strict policies to ban inappropriate ads and companies that try to buy them.