Billionaire Mark Cuban, a maven of web starts ups, said anyone who would buy the video web site YouTube was a “moron.” He says the potential of lawsuits due to copyright infringement will destroy the company.

From such a brilliant businessman, this seems shortsighted. YouTube has made it apparent it is aware of the threat, but has also show surprising resilience in the piracy fight. Particularly the target of television stations, YouTube has gone from being asked to remove video to putting it right back, with a blessing. Just this week, Fox News had YouTube remove video of the controversial Chris Wallace/Bill Clinton interview, only to say they were “thrilled” to have it on the video site the next day.

The reason YouTube and other video sites will last is because the site provides the best mix of advertising and entertainment. Users upload movie trailers and watch them over and over again. Fan video edits of trailers and music videos are having a profound influence on the subject matter influencing them. X-Men 3 and Snakes on a Plane both added lines to their movies that were originate in fan videos broadcast on YouTube and other sites. The Colbert Report has encouraged fans to use green screen film of Steven Colbert using a light saber to create original videos, but they only got the idea after fans started without the invite.

This presents a huge money maker (unless MySpace can get there first). Media companies are going to have to grow a thicker skin when it comes to fan involvement. Rabid fans, the kind who will makes these videos, are the kind who will spread the love of a new movie, song, or game. The challenge is how much are media companies will to give away in power and control to attract the wider audience.