If that's really the case then how come people on /gif/ and /wsg/ on 4chan haven't been sued? There's tons of copyrighted music on there (the ygyl threads are almost all just commercial music with anime.)
By removing the legal system Google has short circuited the law. There is a protection for individuals here, it's called perjury. If the claimants here pulled the same shit they do on 4chan that they do on youtube they would be perjured and that's why they haven't deployed bots to go suing people.