> I wonder if it gives them some kind of safe harbour from the copyright industry.
FWIW, when I search, I see quite a lot of abuse reports for malware; this may have little to nothing to do with the copyright industry (against whom they already have a safe harbor for user-submitted content due to the DMCA.)
I imagine it could still be a kind of "safe harbour" issue.
If a user downloads malware from Google Code, it seems like there's at least some tiny chance they might try to sue Google for it. If they download it from a personal Google Drive account, it will be a lot harder to convince a court that Google had a responsibility for the content.
FWIW, when I search, I see quite a lot of abuse reports for malware; this may have little to nothing to do with the copyright industry (against whom they already have a safe harbor for user-submitted content due to the DMCA.)