Youtube doesn't stream copyrighted material without the author's consent, because they don't want to get sued.
Edit:
Back on topic
I think authors should have civil recourse (as they do) for copyright infringement. Without such an incentives fewer books would written, albums be recorded or video games developed. Like most things in the world it all comes down to money, and without fiscal protection against copying these works many of them would never be made. And i like books, music and video games.
As far as criminal prosacutation (is this what u mean by illegal?) i think it should also apply for the reasons as stated above. Although I believe the standard for criminal proceedings should (and i believe it is) be much higher than that of civil restitution. I don't think the FBI should be coming after college kids for downloading music, and beleive or not this happened to some of my classmates back when napster first came out.



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