Here is the letter Arrington received:
While Arrington disputes YouTube’s contentions, the letter and a follow up he received from YouTube’s general counsel raise an important point. It is tempting to get caught up in the file sharing culture that is so prevalent these days and at the same time it is important to remember that these file sharing sites have terms and conditions that govern the use of those services. These terms and conditions dictate which rights you give up when you upload your content; what you may do with that content and which forms of content may not be posted. We may have a 60s-style culture of sharing and link love but there are parameter for this sharing that are essential if these companies don’t want to be sued out of existence. A good example of how a file sharing site can go wrong is the recent Grokster case in the United States (a summary can be found on Wikipedia).
Let the publisher beware!