Written by: methodshop
on September 19, 2006.
YouTube Inc., the online video-sharing site, said yesterday that it had agreed to share advertising revenue with Warner Music Group in a deal that authorizes YouTube to show Warner Music videos and user-created clips that incorporate Warner music.
The deal reflects an effort by YouTube to continue running a service whose popularity is based largely on free viewing of consumer-generated video clips, many of which include copyrighted material like music, television broadcasts and films.
Under the revenue-sharing accord, YouTube.com will use special software to identify recordings used in videos posted by users and then offer the owner of the copyrighted music a percentage of the fee for advertising that would run alongside the clip. The deal also provides for the copyright owner to demand that YouTube remove the clip instead. Terms of the deal were not disclosed.
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