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But YouTube removes copyrighted material
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No it doesn't! and that is why so many record companies, broadcasting companies are seeking legal action against them. They never have!
As mentioned DMCA only applies to you and me Dan, otherwise how come sites as these are still online? They are still online because someone like serverbeach couldn't afford to lose their business.
Although from today they somehow managed to broker a deal with the Royalties Collection agency. I wonder how much it has cost them?