So, it finally came to pass, Viacom are suing Google/You Tube for $1m (a week after doing a deal with Joost).
I think this may be the turning point for You Tube, one of the biggest and fastest business success stories of all time.
US Courts are notorious for being on the side of rights holders (and recently extended the term date for copyright at Disney's request) and I really can't see them siding with Google on this one. The most likely outcome is a settlement running into eight or even nine figures...
There's a good analysis of the legal situation here.