Nexicon will monitor YouTube users’ activities via its content management system, matching YouTube uploads against original, copyrighted content sourced from the company's “MARC” anti-piracy system. Matches will eventually turn into automated DMCA notices sent to individual pirates, who will be given the option of settling online “in less than three clicks.”

 A few quick problems is the recent Lenz case, in which the court required a "fair use" determination by the copyright holder prior to the issuing of a DMCA.

Second, the intrusiveness.  Nexicon is going to be tracking P2P networks, User Generated Content sites, and related, and issuing automatic DMCA notices, and then require them to settle.  The settlement proedure is handled through their "GetAmnesty" portion of the service.  For all those following the RIAA lawsuits, let's just say that doesn't come as a welcomed approach.  Perhaps it is just PR, and perhaps it is  what I would consider the extoritionist efforts led by the RIAA, although I am sure the RIAA has lessened the amount of piracy going on.

Filtering is definitely becoming the norm now in a digital era.  User Generated Sites have more to worry aobut in relation to uploaded content, as the DMCA requires a site to implement and utilize any standardized copyrighted material protection scheme.

 We will see if a partnership like this will end up being the downfall of YouTube.