The reason YouTube hasn’t been sued out of existence yet is because they have a good system for the copyright holders. Copyrighted works in their database can be automatically detected by content ID or manually claimed by the copyright owner. The copyright owner can then choose to automatically remove the video or receive some/all of the ad revenue from the video.
So copyrighted content on YouTube is only there because the copyright owner uploaded it themselves, is taking the ad revenue, doesn’t know it’s there, or can’t be bothered.
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