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It would appear lemmy.world has blocked this community
(sh.itjust.works)
1. Posts must be related to the discussion of digital piracy
2. Don't request invites, trade, sell, or self-promote
3. Don't request or link to specific pirated titles, including DMs
4. Don't submit low-quality posts, be entitled, or harass others
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3rd parties are not new. All these issues came up when Google, YouTube, etc started storing third party content. They still exist today because they followed the rules.
What? No, my point is that if you are American and host an instance, you'll probably be ok. Just like Google and YouTube.
If you are not American and host an instance, then all bets are off. If you are Swiss, then you are probably ok. If you are North Korean, then maybe the police are coming for you right now.
In the US, if you have copyrighted content on your server and the copyright holder says "Get rid of it", then you have to get rid of it. As long as you comply, you'll be ok. That's literally YouTube's business model.
If you refuse, then the cops might come for you. In the US, cops don't go after users who download copyrighted content, only those who make it available to others.