They could still be sued. It would be found to have no standing... but the record labels could and would drag that out for as long as possible, and cost million

They could still be sued. It would be found to have no standing... but the record labels could and would drag that out for as long as possible, and cost millions in legal fees in the meantime. Google should fight it. It's good for them in the long run, and it's good for society long and short. But they've taken the easier path.