1) what happens with perjury? how severe is "penalty of perjury"?
If at point 5, LayerVault chooses not to take legal action (say, because they realized their mistake), did they just take some random piece of work offline for 10-14 days without any consequence?
What if they do take legal action and lose?
2) You say the provider has to act like a "dumb pipe" and just obey these notices. Does this also exclude basic sanity checks such as calling back the phone number on the notice to check whether the corporation in question actually filed this notice, or whether notice-filer actually exists, whether the phone number is actually connected to the corporation the notice claims to be from, etc? Because otherwise, it's just a matter of time until somebody is going to ... take down all the things.
I just checked Wikipedia on perjury and it says, "Statements which entail an interpretation of fact are not perjury because people often draw inaccurate conclusions unwittingly, or make honest mistakes without the intent to deceive. Individuals may have honest but mistaken beliefs about certain facts, or their recollection may be inaccurate, or may have a different perception of what is the accurate way to state the truth", I think this is pretty much the case for LayerVault. So they won't get penalty of perjury, because they did believe their work had been infringed ... even when it's based on a wrong idea of what constitutes an actual infringement instead of a "heavily inspired by" rip-off?