In youtubes defence i don't think its so much "they're in bed" with the Record companies as much as they risk legal action if they don't backup license violations. Still very annoying though
Well, by helping the little guy, they'd be violating copyright law, which could result in their going out of business. So uh... I think they made the right call.
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They have the power to help the little guy or the man, and they're siding with the man.
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