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Quadrille - 9:33 pm on Apr 17, 2007 (gmt 0)
If they are more ambitious, then it'll be soundtrack based. No way is it image recognition; that's pretty unreliable for still images, let alone these new fangled 'moving pictures'; reditied, recolored and pan and scanned. They'd have to compare every frame with a frame library the size of Mars, on current technology. But sound has a wave form. Nice, simple, linear job. Easy, and would take 0.00000000000000001% of the memory that image recognition would require.
Google probably refer to encoded info - this would (of course) not be applicable to the back catalogue, but as the vast majority of copyright thieves have the imagination of a hamster, that should net 98% of illegal vids by next tuesday pm.