When Google took over YouTube Inc. in a $1.6 billion stock deal, the company was simply begging for trouble. No one could be more correct. Google’s online video service has been recently sued for copyright infringement in fear that they hold Google now has in the online video world will plague all intellectual property rights laws.

Google has not provided detail but disclosed the video copyright lawsuit in its’ quarterly filing with the Securities and Exchange Commision. In Wednesday’s lawsuit, Google acknowledged that more lawsuits for copyright infringement would follow when the YouTube deal closes. A theory running around the blogging community is that Google has set aside $500 million from the YouTube deal to pay for copyright lawsuits. Tuesday, Google CEO Eric Schmidt told a Web 2.0 audience that this rumor was unture. Read