Read the full article for details -- timely reality check.
Viacom said Google’s response misses the mark. “This response ignores the most important fact of the suit, which is that YouTube does not qualify for safe harbor protection under the D.M.C.A.,” Viacom said. “It is obvious that YouTube has knowledge of infringing material on their site, and they are profiting from it.”
This definitely does not look like "negotiation by other means," as Google wants to believe.