Could Apple be held liable for infringing material on YouTube that is displayed through the YouTube viewing application on the iPhone? News.com: Could YouTube drag Apple into copyright fight? : "[Robert Tur is] irked at Apple now because the new iPhone has a feature that allows users to view YouTube videos."
How is Apple's liability for infringing videos on YouTube viewed on the iPhone any different than its liability for infringing videos viewed on a Mac? Or Microsoft and Dell? Heck, we can add in Sony, because its DVD players could be used to watch pirated movies!