> Either google is willfully ignorant or they aren't as great at 'searching' for pirated content as they'd like us to believe. I think the former is much more likely.
Disclaimer: I work for Google (but not YouTube). Opinions are my own.
I suspect this has to do with economics. YouTube has way too many videos so everything is probably largely automated. Having to go through videos and find all possible modifications to pirated content is really difficult, and it'd be very expensive for them to do both in terms of engineering effort and also computing resources.
After all, it's not like you can search videos by their content, you can only search their titles or descriptions with text. Sure, they could start detecting things that have mirrored content, but then people would just change the method by which they modify the original video. People who are trying to upload pirated content only have to modify the videos they upload, while Google has to check all videos that are uploaded, the majority which are likely not pirated, and checking the videos is likely much more computationally expensive than modifying them a tiny bit.
I admit I know nothing at all about video formats and that stuff so if I'm wrong please correct me as I'm always grateful to be able to learn more.