Google is quite unhappy with Viacom at the moment. Understandably so, as they are the targets of one of Viacom's biggest lawsuits ever. Given that, however, Google has responded in public to certain statements Viacom has made as well as the suit itself, asserting that basically Google has done everything right. They claim that Viacom is taking the wrong approach in this case and are trying to re-write copyright law, which won't stand in the courts:
Viacom is attempting to rewrite established copyright law through a baseless lawsuit. In February, after negotiations broke down, Viacom requested that YouTube take down more than 100,000 videos. We did so immediately, working through a weekend. Viacom later withdrew some of those requests, apparently realizing that those videos were not infringing, after all. Though Viacom seems unable to determine what constitutes infringing content, its lawyers believe that we should have the responsibility and ability to do it for them. Fortunately, the law is clear, and on our side.
Even though Google seems to be complying with Viacoms requests as far as content removal, what does this response indicate they will do in court? I doubt they'll settle by this point, and might decide to fight it all the way.