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The bottom line is that Viacom wants to keep every penny that they can and right or wrong doesn't come into it as far as they are concerned. It's all about the money.
They just don't want to pay writers to use their work. If they are making money from selling material created by using writers work then they need to pay the writers for the right to use their work.
Of course the internet is powerful.
Everybody knows it.
Viacom saying that they don't know how powerful it is and because of that they will not pay royalties is just legal jargon designed to confuse the issue.
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Have Fun
Badbob