Internet king Google could be in a perfect position to placate content providers with lucrative partnerships, avoiding lawsuits over copyright violations.

Plus, the $200 million war chest Google has set aside just in case it’s sued for violating copyright laws on uploaded content, particularly videos, likely will be more than enough to pay its legal costs, according to some industry analysts.

Caris & Co. analyst Tim Boyd said having the legal fund ready “is a smart move to keep them safe, but it won’t be exhausted.”

Moreover, the Mountain View, California, company has become the Internet’s biggest advertising broker, so content providers would be foolish to sue and lock themselves out of potentially lucrative advertising partnerships.

Content providers will “call up with the intention of saying, ‘stop this,’” Mr. Boyd said. “But Google will say, ‘why don’t we think of an ad revenue-sharing partnership? The majority of content creators and owners are going to want to partner with Google rather than sue them.” That could be too much of an opportunity to pass up.

Signs from major studios so far point in that direction. Consider that on the eve of its $1.65 billion acquisition of video-hosting site YouTube in October, Google struck strategic ad-sharing deals with NBC, Sony BMC, and Warner Music Group, among others (Google Tunes Music Videos). And Google hopes to forge even more advertising partnerships with big and small content providers.

Neither Google nor any other video-hosting company has the technological capabilities to remove every bit of copyrighted content on its site. But by law, Google is responsible for taking down copyrighted material after a content owner informs the company to do so.

Last week, Google closed its acquisition of YouTube, setting aside in escrow 12.5 percent of the equity issued, or about $200 million, toward possible lawsuits (YouTube Gets Nasty). 

Still, Google disclosed earlier in the month that it had been sued for copyright infringement over Google Video and said it could face additional claims as a result of its YouTube acquisition (NBC Seeks Online Video Payout). But Google CEO Eric Schmidt also has said he was negotiating copyright licensing deals that would insulate Google and YouTube from lawsuits.

Other scenarios could involve Google offering advance payments to major studios and media giants for the rights to distribute their content legally on YouTube.