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YouTube has agreed to pay royalties for songs used in videos on the site, in a deal that means music publishers will treat it much as they do radio stations.
The video-sharing site struck an agreement with a society that collect royalties on behalf of more than 50,000 composers, song-writers and publishers, meaning that videos using their music as a soundtrack will no longer be infringing copyright.
YouTube will pay a flat fee - the amount of which has not been disclosed - to license more than ten million pieces of music in the "first fully formed agreement" of its kind, according to Steve Porter, chief executive of the royalty-collecting MCPS-PRS Alliance.
The decision about how to divide up the fee, which will be similar to the one paid by radio and television broadcasters, will be based on an estimate of what music has been played on the site, the MCPS-PRS said.
The agreement will go some way towards reassuring content owners, who have been concerned about the amount of material that appears illegally on YouTube and which does not generate any revenue for its creators.
All four major record labels have now made licensing deals which mean they take a share of the advertising revenue when YouTube carries their music, but this is the first deal which ensures that revenue will also be collected on behalf of song-writers and publishers.
Media companies wanting to use songs must typically negotiate separate licensing deals with record labels, which own the copyright in recordings, and publishers, which own copyright in the words and melodies.
The National Music Publishers Association - a similar organisation to the MCPS-PRS in the US - recently joined a class-action lawsuit against YouTube accusing it of copyright infringement.
The MCPS-PRS, which counts among its members the four largest publishers - EMI, Sony/ATV, Universal/BMG, and Warner/Chappell - said it would work with YouTube to improve the technology used to monitor songs used in videos on the site, and that initially it would focus on clips which attract the highest audiences.
"We're more interested in videos that are played three million times rather than three times," Andrew Shaw, the managing director for broadcast and online at the MCPS-PRS, said. "Logic would dictate that you start with the high volume videos and work your way down to the long tail."
The MCPS-PRS deal covers publishers based in the UK and elsewhere, but is only applicable to royalties which stem from clips watched by YouTube users in the UK.
YouTube, which is owned by Google, is undertood to be negotiating similar deals with collecting societies in other territories.
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Contrary to what most people think, it's not in fact strictly legal to include recordings of UK artists' music (even where it's written by Alliance members) in YouTube videos, not until the PPL are on board anyway - see http://www.consumingexperience.com/2007/09/google-youtube-music-in-videos-legal.html, which includes some further information I obtained from the MCPS-PRS Alliance about their YouTube deal which was not in the Alliance press release and has not otherwise been made public previously as far as I know.
Improbulus, London,
Contrary to what most people think, it's not in fact strictly legal to include recordings of UK artists' music (even where it's written by Alliance members) in YouTube videos, not until the PPL are on board anyway - see http://www.consumingexperience.com/2007/09/google-youtube-music-in-videos-legal.html, which includes some further information I obtained from the MCPS-PRS Alliance about their YouTube deal which was not in the Alliance press release and has not otherwise been made public previously as far as I know.
Improbulus, London,
I am puzzled to read that only views from UK You Tube viewers are accounted for. If a clip is used in a UK channel hosted video and it is viewed in Japan, what then?
What if the music and LYRICS are re-recorded (by virtue of it now being on camera) by a cover artist and shown on You Tube? There is an entire generation of young musicians and singers who start with cover versions and some have already found internet fame through this method. What of them?
I agree that revenue sharing and/or flat fees for music or other copyrighted material used judiciously (please do not ask me to define what would be judicious use! LOL!) is probably the best way forward in making sure that You Tube behave as any broadcaster should- with responsibility to pay for that which makes it earn.
BUT do you know that You Tube will STILL pull any video which, though possible deemed to be an earner, IF the copyright owner wants it pulled?!
How is the uploader to know when it IS OK and when not? Hmm..
MacBraveheart, Edinburgh, Scotland
It now means that if a song is popular but isn't making many sales that the artist can get their share of the revenue. The only negative is that to qualify for the revenue you have to get it from those who are collecting it. As greedy as the record labels are it means that artists have a good chance of getting some of their money for the work they do. Lazy spoilt brats who somehow feel that all music should be free should be disconnected from the net and made to take music lessons. Just because record labels make far too much money doesn't mean that the artists should make none. In the example of YouTube the advantage is if some 15 year old skater makes his video feature Linkin Park (showing his poor music taste) the kid doesn't have to pay instead Linkin Park make their money from YouTube/Google and their advertising revenue. Seems pretty fair all round.
Martin Bentley, Bristol, UK
Lets suppress creativity on the net for a few bucks profit
Obscene
G Roberts, Perth, Australia
It now means that if a song is popular but isn't making many sales that the artist can get their share of the revenue. The only negative is that to qualify for the revenue you have to get it from those who are collecting it.
As greedy as the record labels are it means that artists have a good chance of getting some of their money for the work they do. Lazy spoilt brats who somehow feel that all music should be free should be disconnected from the net and made to take music lessons. Just because record labels make far too much money doesn't mean that the artists should make none.
In the example of YouTube the advantage is if some 15 year old skater makes his video feature Linkin Park (showing his poor music taste) the kid doesn't have to pay instead Linkin Park make their money from YouTube/Google and their advertising revenue. Seems pretty fair all round.
Martin, Bristol, UK
It isn't a 1 to 1 situation like that. It is more like Linkin Park's producers are going to be recieivng money regardless, as YouTube would be paying a flat-fee to liscence all songs from these produces, and if the top 5 videos with millions of hits each all use Linkin Park songs, then their producers will get a much bigger cut of the money that YouTube will be paying. Clubs usually have the same kind of contract going on so that if a DJ comes in and plays music by someone or a band comes in and does cover songs, royalties are considered already paid for. So this isn't an uncommon sort of agreement at all, it is just uncommon for it to be applied to internet sites. And if the popular songs get more people to watch the videos and YouTube can turn that around into advertising revenue, it is a pretty good deal for them I would imagine.
Andrew, RP, California
license to print money:
What exactly is to stop the music industry/artists or agents from uploading their own video c/w soundtracks [for free] and get paid for doing so..
A N other, york,
This couldn't possibly mean that if some 15yo kid makes a skateboarding showoff video, and uses a Linkin Park song for the background music, YouTube has to pay Linkin Park?
If so this would be thethe most pathetic example of runaway greed I've ever seen.
Dave, Philadelphia, PA