Red Herring has an article that looks at state control of the internet in the wake of the Brazilian blocking order issued against YouTube because of the Daniela Cicarelli video.
The article quotes Jack Goldsmith, a Harvard Law School professor and author of Who Controls the Internet? Illusions of a Borderless World:
It’s perfectly legitimate for Brazil to do whatever it can to stop YouTube from showing the video. The state has the ability to regulate what’s in its borders.
As I mentioned in my original writeup on Friday, The 2007 Canadian Telecom Summit in June includes a session examining Canadian perspectives on what should be done about various forms of Illegal Content on the Internet.