YouTube Steps Up Copyright Battle Against Game Channels
Copyfight 2013-12-20
Summary:

The affected content includes everything from straight-up reviews of games to how-to/strategy guide videos to the wildly popular "Let's Play"-type productions. It's been rumored for some months that YouTube would be going after some of the most egregious video producers, people who put more or less raw game footage online without any added commentary or consumer value. But this action appears to have been much more widespread than anyone expected.
To make matters worse, video owners are reporting that some of the copyright claims appear to have originated with entities that have no connection to the claimed content. It's not clear if this is a malfunction in YouTube's automated Content ID system - which is essentially what YouTube is claiming - or if it's greedy actors jumping on a bandwagon. False copyright claims are not just a problem for the video producers, as Polygon reports that some gaming companies such as Capcom do not want to see other entities trying to claim copyright control over Capcom gaming property. Other major gaming companies such as Ubisoft and Blizzard have tried to reassure video producers that this was not their doing and urged people who have gotten these notices to contest them.
This incident is calling new attention to the murky areas in which this content lives. Nobody is disputing that the gaming companies own the source gaming video and audio material. Nobody is disputing that some of these video producers make money through selling ads associated with their videos. But that doesn't tell us what's legal and what's not. Some amount of this material is likely to be covered under fair use. Other video material may use a sufficiently small amount of copyright content as to be judged non-infringing. Still more of the video material adds value or is transformative in ways that courts have generally found to be acceptable.
Beyond the legal questions there are also practical questions. Gaming companies get, essentially, a lot of free advertising through third-party-produced gaming videos. Sometimes those videos can be the top search results because people like them and link to them more than to official videos. High search-result ranking is also a value. Practically, then, does it make sense for gaming companies to try to rein in people who are encouraging others to play those companies' games?
Judging from the game companies' responses they seem to think "No," which has led (at least as I read the gaming buzz) to a lot of rumors that YouTube is just actively covering its ass in case of future claims.