You may recall an entry titled Did Google violate its 'do no evil' pledge? in which a blog entry at Mark Cuban's weblog speculated about how the YouTube acquisition was structured.

On Tuesday, Google CEO Eric Schmidt refuted the claim that $500 million was set aside in escrow for legal claims.

Schmidt's denial came during an interview conducted by John Battelle at a Web 2.0 conference in San Francisco. He said the deal did not include a reserve for legal claims, but he was quick to add that progress was being made in getting media companies to sign copyright deals that would insulate both companies from future litigation.

No word from Mr. Schmidt yet on the rest of the allegation made at Mark Cuban's site.