Napster filed for bankruptcy in 2001 and blamed their "enormous legal fees" as the primary cause. (Outside of, you know, having any actual revenue.) Kazaa was i

Napster filed for bankruptcy in 2001 and blamed their "enormous legal fees" as the primary cause. (Outside of, you know, having any actual revenue.) Kazaa was in the same boat. It's true, they did participate in some lawsuits, but they were going to be overwhelmed by the sheer volume of legal activity (the very purpose of which was to drain them of resources.) Appeals, filings in multiple districts, etc. Back to Google/Youtube -- Google had the resources to sustain any sort of legal onslaught by the RIAA. In fact, more so as those companies started to see their profits decline steadily during the mid 2000s, and the prospect of winning a protracted legal battle wasn't so certain. As a bully, it's much easier to take the little kids' lunch money, but not so much fun when you encounter a much bigger kid on the playground.