So, just so I get this right:
(a) Google is faced with a rather expensive copyright lawsuit from three rather large companies and it announces that it is going to spend rather a large amount of money to try and appease them by developing special visual recognition software in order to reduce piracy on YouTube by removing images that break copyright laws.
(b) Google refuses in any way to remove violent images and recordings of children being bullied that are being posted on YouTube, even to the point of unconsciousness, because it claims that it is not up to them to be a moral censor and, besides, it would prove almost impossible to detect and remove these images.
Is this the same company?
If so - I have a solution to this that might solve everybody's problems. How about if all beatings up are actually promoted by an agent of some sort so that they can then become copyrighted material. Obviously the victim too would be party to the copyright agreement and all would be entitled to payment for every time the image or recordings were screened. And because they were copyrighted, Google would then use its new software to protect the rights of those people too.
See? There's always a positive solution when you look hard enough...