Is it fair to assume that this must be something YouTube set up? I guess I'm wondering if YouTube says to the record labels "Hey, don't worry about us anymore. We scan everything and if one of your songs is found we'll send out the notice. Just sign this doc saying you wont' sue us if/and we'll monitor this all automatically for you" Perhaps that's why they dropped it pretty quickly (or maybe it was fear of this guy) It would kind of suck if they're just trying to protect their artists from being ripped off and now are going to be the poster child for this crusade to destroy the bots. Seems like YouTube might be the significantly more guilt party. (Not sure so posting this as a question)
YouTube does have an automated monitoring system called ContenpID, but it doesn't send C&D notices like Lessig claims he received, so that's on the label. As far as I know, YouTube itself just blocks the video.