Wikipedia disagrees with you, gideongallery.
Quote:
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At the time of uploading a video, YouTube users are shown a screen with the message "Do not upload any TV shows, music videos, music concerts or advertisements without permission, unless they consist entirely of content that you created yourself".[162] Despite this advice, there are still many unauthorized clips of copyrighted material on YouTube. YouTube does not view videos before they are posted online, and it is left to copyright holders to issue a takedown notice pursuant to the terms of the Digital Millennium Copyright Act. Three successful complaints for copyright infringement against a user account will result in the account and all of its uploaded videos being deleted.[163][164]
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http://en.wikipedia.org/wiki/Youtube...ghted_material
I read about a "copyright education" option which can in some instances give them a break but as far as I know once permanently banned or deleted all the videos are still removed. I've seen at least 100 instances of it in the last year.