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August 18th, 2008, 10:57 GMT · By Denisa Ilascu

Copyrighted Videos Stay on YouTube

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Media companies get ad revenues for their copyrighted videos posted on YouTube
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Media companies have grown tired of forcing YouTube into pulling copyrighted videos off the website. Some may wonder why, as copyright infringements can bring, in time, millions of dollars worth of damages. According to the New York Times, CBS, Universal Music, Lionsgate Entertainment and Electronic Arts, along with other companies, have decided to profit from the legal rights they have over certain videos hosted on YouTube, by sharing advertising money with the hosting website.

Part of the videos is now offered along with ads provided by Google. In case someone posts a home-made video or even a professional one, but for which they have copyrights, advertising revenues are shared by YouTube and that specific user. Now, for videos that belong to certain media or other types of companies, revenues are shared according to a contract signed in advance between that firm and the hosting website, so users can't claim any money for uploaded videos that are not theirs.

In order to help companies and spare them the trouble of having to spend ages searching through the millions of videos on YouTube for their properties, last fall, YouTube introduced the video identification tool. By comparing some characteristics of their videos with those of a YouTube clip, companies can now tell if an illegal copy has been posted or not. As a consequence, they can ask YouTube to remove said content from the website. But, apparently, companies are beginning to believe that adding advertisings to these videos, instead of simply pulling them down, may come with bigger advantages. Since the products themselves are being promoted, because they are seen by a larger audience, their producers also gain a share of the advertising revenues.

Nevertheless, not all media companies agree with this method. Viacom's lawsuit against YouTube on copyright infringement claims is an all too familiar case for the industry, proving the belief that a trial could bring more money than ads, even if its in the long term. Taking into account that Viacom asked for $1 billion damages, this assertion indeed seems well grounded.

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