Everyone was saying that the YouTube deal was a bad idea because of the copyright issues. Of course, Google knew about these issues as well. I can't help but think now that they had this in mind all along, to buy them and then duke it out with a major media giant over copyright laws. Surely, if they win this case, that would set some major precedence which might help other areas they are in as well.
Of course, everyone is rooting for google because they love their free content, but when you seat people on a jury, then tend to take things seriously.
The law says "don't do X".
Google does "X".
...15 minutes of deliberations later...
Google is found liable for doing "X".
It's really straightforward, and arguments about information wanting to be free don't really work in a courtroom setting.
My understanding of the DMCA is that as long as sites promptly remove copyrighted materials they are not in violation of the law. Rather than arguments about "information wanting to be free", I think we'll see a lot of obtuse arguments about what engenders "prompt removal", etc.
On the topic of copyrights and the web, what I'd like to know is how Pandora was so successful in getting licenses for all the music they use.