Michael Liedtke writes in this article about the recent lawsuit brought against Google involving Google's online video service and whether or not the lawsuit is a sign of more copyright issues to come for Google's newest addition, YouTube.  He writes that content owners may only be biding their time until the Google acquisition of YouTube is finalized.  At that point, a number of lawsuits may be filed against YouTube by copyright holders. 

Google launched its online video service this January.  Since then, Liedtke writes, they have been desperately trying to catch up to YouTube, created a year earlier by two Pay Pal employees in California.  However, Google has "abandoned its attempts to catch YouTube", and instead just purchased the company for a cool $1.65 billion.  The issue with the acquisition, Liedtke explains, is that copyright holders can now sue YouTube with expectations of a large payout, now that they are backed by the immense capital possessed by Google. Liedtke notes that before the deal with Google, YouTube "had been subsisting on $11.5 million in venture capital".  Google itself has $10.4 billion- in cash.  Google itself has acknowledged the fact that it could face more copyright lawsuits because of YouTube.

Liedtke also talks about the widely circulated internet rumor which said that Google had set aside $500 million in case copyright issues came up after the purchase of YouTube.  The number was later confirmed to be $200 million by Google representatives.  Eric Schmidt, Google's CEO, continues to remain confident amidst the fears of lawsuits.  He said that YouTube has "been on this path" referring to copyright issues, and that together they could solve these issues "more quickly". 

Investors also seem to be unfazed by copyright concerns over YouTube.  Liedtke points to the fact that Google has a lot of experience in copyright cases and has yet to been dealt a serious blow.  Google's stock has risen nearly 15% since the purchase of YouTube. 

Tim Wu in this Slate article describes in detail the differences between YouTube and Napster and why he believes that YouTube has very solid legal footing. Wu simply says the YouTube has a safe harbor provision in the DMCA protecting them, while  He also describes the "Bell lobbyists" and how their efforts set the foundation for YouTube's seemingly successful business model. 

The Bell lobbyists, Wu writes, fought one of the greatest copyright struggles in history when it took on Hollywood over the liability of internet companies for copyright infringement.  Wu describes the clash of these two entities as "Frazier meeting Foreman", saying that the unstoppable force that was the Hollywood lobbying team finally met an immovable object in the Bell lobbyists.  Hollywood, on one side, wanted internet sites to be responsible for all content on their site, even if they were unaware of the infringing content.  The Bell lobbyists insisted that this was ludacris and fought against Hollywood's lobbyists with all their political might.  A stalemate insued, so a compromise was reached.  Wu writes that this compromise would later become Title II of the DMCA, which states that companies are protected by a "notice and takedown" system.  This means that all a site has to do to comply with copyright laws is take down infringing material at the request of the copyright holders.  Therefore, YouTube only needs to quickly takedown any material after notified to avoid legal issues. 

Wu does mention that this provision is not 100% "air-tight" noting that if YouTube knows there is infringing material on its site and fails to act, it may be liable in court for the infringement.  Wu then describes the difference between Napster and YouTube, saying that if the Internet were a red-light district, Napster would be the "pimp" and YouTube the "hotel".  He says that while Napster, like a pimp, is a means of getting illegal things and nothing else, YouTube is like the hotel in that they only "provides the space for people to do things, legal or not".