http://static.googleusercontent.com/external_content/untrust...
So this is still pretty far below the Supreme Court (which might or might not be willing to grant cert; they don't have to hear just any old case) and there's likely to be quite a bit of legal wrangling to go through. Perhaps even years worth, unless they can settle.
Google has been smart from what I've seen in terms of pointing out that the relevant part of copyright law is whether someone has permission to post something, and that's not something you can determine algorithmically. Even Viacom's lawyers screwed that up, after doing due diligence, and had to remove Viacom-posted clips from the case. Twice.
You don't get to appeal to the Supreme Court until you've exhausted all your other appeals. And there aren't many instances where SCOTUS has original jurisdiction (those are very rare, and in that case you go straight to the Supremes rather than dealing with lower courts).
But, no, I don't think they'll grant cert (though you never know). Viacom flamed out on summary judgment. IMHO, this is more like SCO where you have an angry litigant who will exhaust all appeals rather than admit defeat, which is why I feel that appeal is inevitable.
Also, they'll be lobbying lawmakers to change the law. You can bank on that. They're already working on the Obama administration from what I can see, given that piracy crackdown they promised.
Though if they did take it, that would set a lasting precedent.
Either way, its a victory.