Google-owned YouTube.com is facing a €500m lawsuit from Italian broadcaster Mediaset Spa.

Mediaset says about 4,600 of its copyrighted clips (325 hours of transmission) are posted on the video-sharing site. Google has downplayed the allegations, saying YouTube respects copyright ownership. YouTube is currently defending a $1bn copyright infringement claim from US media firm Viacom.

Meanwhile, Google is contemplating setting up its own venture capital arm, say reports.

The search firm is reported to have posted David Drummond, senior vice president of corporate development and chief legal officer, to lead the investment business, said the Wall Street Journal. The paper said Google has hired William Maris, a former web-hosting entrepreneur, to help set up the unit.