YouTube is just about done with their automated copyright filtering system that was originally supposed to launch last year. Google CEO Eric Schmidt calls it “Claim Your Content” and it will help keep copyrighted material off of YouTube by preventing it from being uploaded in the first place. Schmidt says that they’re “very close to turning this on.”

The sooner Google is able to get this implemented, the better. So far, the copyright issues are just costing Google more money than good. Schmidt was asked about the whole Viacom lawsuit over copyright issues, and he responded saying “Ah Viacom. You’re either doing business with them or being sued by them… we chose the former, but ended up the latter.”

Also funny is that Schmidt was asked about Microsoft raising concerns over the DoubleClick deal, and he responded with “Microsoft?” As though he hadn’t heard of them before…