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For me the case is pretty simple. If it is found out that Youtube "filters" its content in any way before it is uploaded (other than for length of filesize) than they are no longer just a host and they most likely be able to hide behind DMCA. Also many Youtube users now have partner accounts and make money off of what they post on the site so if it is found that a copyrighted material is being used by others for profit they could be in trouble.
The first one is really the big one. Without DMCA they are like any other site out there that is posting content and they would then become responsible for that content. They would most likely lose the case with viacom and end up either having to shut the site down or make drastic changes to it in order to keep it open. If Viacom wins people will have to wait in line to sue them because media companies will come out of the woodwork to get a piece of the google pie.
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