"Investors will examine the creation of IP very carefully in such a situation as they don't want to buy into a law suit."
Unless the "IP" (a bullshit weasel word if ever there was one) is YouTube.com, in which case investors are eager to pay billions of dollars for a site where 90% of the compelling content is copyrighted by someone other than the person posting it.
He means the IP of the startup itself, not of the content flowing through it. Google would have been a lot more worried about buying YouTube if some of the code had been written for one of the founders' previous employers.
Unless the "IP" (a bullshit weasel word if ever there was one) is YouTube.com, in which case investors are eager to pay billions of dollars for a site where 90% of the compelling content is copyrighted by someone other than the person posting it.