I think this is a case between a traditional copyright content owner and an up-to-date internet service provider. Although the law at issue, DMCA, provides protection (=safe harbor) to the ISPs, the outcome does not seem to be simple that ISP prevails under the law.
In fact, the content owner, Viacom, claims that ISP, YouTube, had an actual knowledge of infrimgement in its contents, which means disqualification of safe harbor in DMCA §512. At the same time, Viacom is not an innocent victim of unlawful conducts, but it had posted its own contents for advertisement purpose.
I think the biggest issue is caused by ambiguity of the DMCA. It has no language for copyright holders conduct, however, it is apparently unfair if an ISP is held liable for infringement which may be made by the content owner. It must be clarified if any conduct by content owner affects the legality of the ISPs.
Therefore, my final comment is that the DMCA should be amended under further consideration of other stakeholders’ role in the rule, since it has a significant impact not only in the industry but to the innovation.
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