YouTube Will Pay Warner Music Group Royalties

copyright Adage.com
By Gavin O'Malley
Published: September 18, 2006

NEW YORK (AdAge.com) -- Winning over another would-be foe, YouTube has reached a revenue-sharing deal with Warner Music Group, which will now distribute and license its copyrighted content through the hugely popular video-sharing site.

Warner can now expect an undisclosed share of ad revenue whenever YouTube users stream a video containing the company's intellectual property. If, for example, an amateur auteur borrows a snippet of Madonna's latest video, or scores their short with a track from Missy Elliot's new album, Warner is now guaranteed compensation. To make this possible, YouTube developed a royalty-tracking system that detects when homemade videos are using copyrighted material.

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