Google claims that Universal had no basis for removing the "Mega Song" video posted in support of the MegaUpload service (which Universal is trying to drive off the Internet). Earlier this week, a court filing from Universal suggested that the company had negotiated the right to remove videos it doesn't own from YouTube as part of a private agreement with Google.
“Our partners do not have the right to take down videos from YT unless they own the rights to them or they are live performances controlled through exclusive agreements with their artists, which is why we reinstated it,” Google-owned YouTube said...
Universal said Google’s private system doesn’t count as an official takedown notice under the Digital Millennium Copyright Act, and thus it was immune from legal liability. It’s a position that Ira Rothken, Megaupload’s attorney, said was preposterous.