We get songs from youtube videos. If anyone has copyright issues, it's the ones who uploaded the songs to youtube, not us.
He actually has a fair point given that we're definitely breaking youtube's copyright protection. But law always has a way. 17 U.S. Code § 107 - Limitations on exclusive rights: Fair use Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include— (1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work. The fact that a work is unpublished shall not itself bar a finding of fair use if such finding is made upon consideration of all the above factors.
Regardless, hundreds and possibly thousands of Gmod servers use copywritten songs and song clips, not to mention other games that have people that do the same. I really doubt that if anything were to happen that our servers would be the ones targeted. Nothing to worry about.
The big issue with copywritten material is that people take it and try to make money off of it without giving credit. I'm not sure if Bay makes money off of this or if it all goes towards keeping the servers going. So that would be the deciding factor in the end. But I still say that there will be nothing to worry about.