SilverWook said:

How do they find these things so damn fast? Is it some sort of automated process?

Yes. When the video is uploaded, they scan it, and if there is any copyrighted material found, depending on the company that is associated with the material, they either put an advert with it, or it is blocked (in some, or all countries).

As an example, many of my videos have Star Wars music, and Sony (SME) puts ads on them. But, Fox will completely block videos.

Although, it can change later on. My 'HothWorld' video was blocked by Universal for a long time, and then was suddenly unblocked.