I posted some thoughts on the law here: https://news.ycombinator.com/item?id=8789302

Service provider liability isn't exactly a new topic; it goes back to at least Cubby v. CompuServe in 1991 (note this is not necessarily the law today) and hundreds of law review articles and dozens of conferences have discussed the topic. You might also want to read DMCA Sec. 512: http://www.law.cornell.edu/uscode/text/17/512