Google surely knew when they were mulling over the purchase of YouTube that they would face a huge legal quagmire over all of the pirated content on YouTube.    Pete Cashmore at Mashable is reporting that Google is frantically paying off content owners to avoid getting sued and to keep content on YouTube.

Google is having ongoing talks with CBS, Time Warner, Viacom, NBC Universal and News Corp to resolve the issue.   Mashable reports that rumors indicated that $500 million of the the $1.6 billion purchase price was reserved for litigation.

Cashmore believes that Google has thought the whole thing through before hand, had the appropriate discussions with content owners, and that the whole mess will work itself out in time, allowing the video on the net craze to move forward relatively unscathed.

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