January 27, 2009 4:00 AM PST

YouTube users caught in Warner Music spat

by Greg Sandoval
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Corey Vidal is no pirate, but he's been branded one as a result of the licensing spat between Warner Music Group and YouTube.

On YouTube, Vidal posted a humorous video tribute to John Williams, the man who scored the soundtracks for such blockbuster films as Indiana Jones, and Star Wars. In his clip he included some of Williams' music. By now, everybody knows that YouTube removes videos that violate copyright law. What's different about Vidal's work getting pulled is that when he posted it in October, he was permitted to use Warner's music.

Until last month, YouTube had an agreement with Warner Music--one of the four largest recording companies--that allowed video creators to include the label's content in their clips. Last month, talks to renew the deal broke down and that means YouTube and its users no longer have access to Warner's library. For this reason, the case is much different than YouTube's high-profile fight with Viacom or run-of-the-mill piracy that once flourished on the site.

Sources close to the situation say YouTube is close to finalizing a new agreement with Sony Music.

In 2007, Viacom and YouTube failed to come to terms on a licensing deal and Viacom requested that YouTube pull its content. In that case, there was no prior agreement. Most of the people who posted Viacom's films or TV shows to YouTube did so without authorization. In this situation, YouTube fans used Warner Music's songs for two years with the label's blessing. Now, through no fault of their own, the videos that YouTube users made in good faith are being yanked.

"I don't understand who I'm harming," said Frank Stallone, a 41-year-old former DJ who is quick to point out that he is not the less-famous brother of the box office draw. Stallone's video was removed for using 45 seconds from "Forget Me Nots," a 1982 song from Patrice Rushen. "If anything, people are hearing the 45-second tease they haven't heard in a while and they'll want to go out and buy the song," he said.

Warner Music declined to comment, but YouTube had this to say: "While we work with music labels and publishers to keep music on the site, sometimes our negotiations don't pan out," said a spokesman for the company. "In those cases, we try to give people options when they receive a copyright claim. Instead of automatically blocking videos, we give uploaders the choice to dispute the claim (in the case of Fair Use, for example), use our AudioSwap tool to replace the track with one from our library of pre-cleared music, or to replace the video with a new version with no sound."

If nothing else, the situation serves as a warning to those who think that because YouTube obtains rights to music or films one day, the agreements will last forever. That's just not how these deals work.

One of Corey Vidal's fans has reposted the video that was removed at Warner Music's request.

(Credit: YouTube)

That hasn't stopped some YouTube's fans from posting angry videos denouncing the situation at YouTube. Most of the protest videos take aim at Warner and the other three top recording companies. While all four of the big labels are in discussions about renewing licensing agreements, Warner is the only one scuffling publicly with YouTube.

In fact, sources close to the situation say YouTube is close to finalizing a new agreement with one of Warner's chief rivals: Sony Music.

The situation illustrates how Web services and entertainment companies are learning hard lessons as they cover uncharted ground. It's doubtful that Warner Music or YouTube intended to alienate their customers. Presumably Warner Music wants more concessions from YouTube and the Web's No. 1 video site wants to pay less. What they likely didn't consider when they penned their initial contract was what would happen to users if they failed to agree on a new deal.

Vidal, a 22-year-old from the Canadian province of Ontario, is more than happy to help them understand.

Vidal makes his living by creating YouTube videos. He's a member of the company's YouTube Partners program. This allows him to sell some of the advertisements that accompany his clips and pocket the money. He says that his videos see about 3.4 million to 4 million views per month and YouTube is his only source of income. As for how much he makes, Vidal only will say it's enough for him to live comfortably.

Vidal hit the jackpot with his tribute to Williams. YouTube featured it on the site's front door. He says for a time the clip was generating a million views each day and was nominated for a "People's Choice Award" at CBS, parent company of CNET News.

But on January 18, Vidal's cash cow went down.

YouTube sent him a notice that said Warner Music had claimed his video had infringed on the label's copyright. Vidal doesn't dispute that the label owns the rights to the music he used. "I'll share the money I made with them but I just want my video back up."

But he has so many questions about whether his video truly violates copyright law and if so, what part of the video infringes? That's the other problem raised by the quarrel between Warner Music and YouTube. When users are dragged into it, there's few places to get answers. Vidal said he called Warner Music and talked to about half a dozen people in the eight days since his video was removed. He has yet to hear back why exactly the video was pulled down or whether he and the record company can strike a separate deal.

To its credit, Viacom set up a support hot line to help answer questions and address disputes when it began pulling content from YouTube.

That's what Stallone, the former DJ, says he needs. He says he doesn't think using 45 seconds of a song is breaking any law, but he doesn't have anywhere to go to get legal help. Also, he said he was discouraged by some of the language in the takedown notice YouTube sent him. Specifically, this passage: "There are very few valid reasons for disputing a claim," YouTube wrote in the notice. "Submitting an invalid dispute can result in penalties against your account."

Stallone wants to know how he's supposed to determine what an invalid dispute is?

YouTube users should not assume copyright holders are always correct when they accuse someone of a violation, according to Fred von Lohmann, senior attorney for the Electronic Frontier Foundation, a watchdog group that advocates for the rights of Internet users. In the Viacom case, for instance, the company acknowledged erring in a small number of cases.

In another case, a Pennsylvania woman is suing rocker Prince and Universal Music for accusing her of copyright violation for including a brief snippet of Prince's music in a video of her baby. Universal and Prince dropped their copyright claims against the woman and her video has returned to YouTube.

I'm no lawyer, but Stallone's case sounds very similar.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 2 pages (38 Comments)
by kurt mclaren January 27, 2009 4:32 AM PST
hey here is an idea..if they really want to make money, why not just allow people to upload their stuff..and let youtube provide a link to either their website or somewhere where the content that is being viewed or parts of it (music video, or song..just have a link beside it saying "if you like this song click here", or "if you like this music video click here"), so that we can purchase the MP3 or the video. It's pointless every time we hit the site the content was removed because of copyright violations. Stupid is the word as It should be used as an ad board for selling music, music videos, tv shows or movies, old clips or whatever else..Stuff you know you would never have seen if it wasn't for youtube or even knew existed...I know i would love to buy the videos or the songs that i've searched and found on youtube and some of the tv shows that were posted there...That's just an idea.. instead of the rubbish that's happening now...
Reply to this comment
by knowles2 January 27, 2009 8:08 AM PST
I thought Youtube had started to do this already. It does seem a obvious way to make money for record company and google.
by kurt mclaren January 27, 2009 4:42 AM PST
allow you tubers from anywhere in the world to have accounts where they can pay using a credit card or paypal, and pay for stuff they like on you tube...i mean i like the british comedy allo allo, watched it on you tube and would like to purchase the whole series, and the same can be said for blazing saddles..and numerous old videos and songs from jimmi hendrix, gilbert o'sulivan to more modern stuff from korn, and linkin park..If google have not yet figured out how to make money from youtube..this is one way..charge these companies to advertise or each time someone buys stuff off youtube that they produce or distribute...
Reply to this comment
by paulsecic January 27, 2009 10:11 AM PST
HULU is much better. I find classic shows from 50's 60's. And they're not grainy.
by Endbringer January 27, 2009 5:22 AM PST
Playing 45 seconds of a music clip does not violate copyright law. Congress has let the corporations that hardly ever die "own" the copyright to get away with anything and everything the corporations want. Original copyright law was never intended to keep someone from using parts of a book or music, so how did it get to this point now? Copyright was intended to let the owner / creator get credit for the work for a few years, then it'd become part of the public domain. Letting a copyright last for over 10 years is ridiculous. Star Wars came out over 30 years ago, yet someone can't use parts of the music from that soundtrack? Thomas Jefferson is rolling in his grave.
Reply to this comment
by i8246i January 27, 2009 9:27 AM PST
Show me some real proof about playing 45 seconds of a song not violating copyright law.

I don't agree with people having their videos pulled (especially the guy doing the tribute), but you're dealing with the law, not what is morally right.
by DJFrankNJ January 27, 2009 5:29 AM PST
Thanks for using me in your story Greg. These Entertainment Companies aren't looking at this with both eyes open. They're ruining You Tube. Here's a comment that I copied from an old freestyle song that I was just listening to: "Wow, thanks for posting this. I'm surprised to have found this song on here. The artist is my Godmother, so our family is very happy to see people haven't forgotten her!! Unfortunately, her career ended before it really had the chance to take off" I hope that her family isn't too disappointed when it's gone.
DJ Frank Stallone
Reply to this comment
by smilin:) January 27, 2009 10:13 AM PST
...Now send us some money
by Edenza January 28, 2009 8:45 AM PST
Frank, the legal help you need is EFF.org. Contact them.

~ Stephanie Lenz (the Pennsylvania mother suing UMG)
by January 27, 2009 7:06 AM PST
Try Vimeo instead.

www.vimeo.com

More video, less hassle
Reply to this comment
by mroobalooba January 27, 2009 7:11 AM PST
I've recently had an email regarding a video of me and my friend dancing to Cotton Eye Joe on youtube...only to find 2 days later it was taken off due to copyright violation according to Warner Music Group! The thing is, i've looked everywhere online to see if their claim was true and on no website, to do with the Rednex..and not even on WMG's website, does it mention that they own the rights to that song..nor any of their sub company's! We'd even recieved a message from the Rednex saying they liked the video and yet that isn't enough to have it remain online...whats the deal!!
Reply to this comment
by IVuAN January 27, 2009 7:12 AM PST
Really, what this people only want is to angry the users, what part of COREY'S video was copyright infringement? So what type of videos are we allowed to upload to youtube? This companies are only ruining sites like youtube, rarely you see a really good video uploaded and when you find one its removed because there's a not so good reason(maybe there isn't even one). They're pestering the users, and I think keeping copyright's is good but this is going a little too far.
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by umbrae January 27, 2009 7:19 AM PST
This is why copyright law is screwed up. All of this is legal "fair use" and the DMCA is being abused to remove them.
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by Len Bullard January 27, 2009 7:20 AM PST
Welcome to life in the cloud. Just because you can get on someone else's doesn't mean they have to let you stay there.

Like it or not, if he used Williams' music and then Warner Bros entered a dispute, he is part of that dispute and he took the risk knowingly. If he didn't understand that, he may be a great YouTuber but a poor businessman.

Time to grow up and understand the realities of content production.
Reply to this comment
by sunnytaz January 27, 2009 7:35 AM PST
I found several of my favorite Youtube videos unavailable due to this squabble. What Warner Bros fails to understand is that their artists pick up many sales thanks to hearing/watching a video on Youtube. If I find something I enjoy on Youtube I purchase the song on Itunes or the entire CD at a retail store if I like it that much. So Youtube puts money into Warner Brothers coffers. Same thing applies when I am upset and angry as I am now with WB. I will boycott WB and all their artists until my favorite videos are available again. Are they so arrogant to think I will spend money when they treat their customers in this manner?
Reply to this comment
by t8 January 27, 2009 2:10 PM PST
Hi. This is Warner Brothers. Yes we are arrogant. Got a problem with that pal?
by edollete January 27, 2009 7:45 AM PST
One solution, just shutdown YOUTUBE! In this economy, one less problem to worry about for GOOGLE and no problem for WARNER thinking how to extract money from youtubers. Simple! Back to basic even 1year old can solve the problem.
Reply to this comment
by sandonet January 27, 2009 9:16 AM PST
Edollete,

Shut down YouTube??? Are you kidding? Nobody has dinged the company for lacking a business model more than me, but there's no way I can conceive of a world now without this site. YouTube has become such a huge part of how people communicate and obtain information. When someone wants to share a song with a friend (legally) they now send a YouTube link of the music video. Politicians share their views with the masses via YouTube. The site has help expose wrongdoing by policeman and government officials. I have to believe that even if Google was forced to charge a small subscription fee, this site will live on.
by xcal78 January 27, 2009 9:42 AM PST
Yea lets shutdown Walmart, McD's, Sony, and Dell just because. Why not toss in Red Lobster and Apple too while we're at it. That'll solve all our issues in life!
by xcal78 January 27, 2009 9:45 AM PST
"Back to basic even 1year old can solve the problem"

FYI, Most elementry kids could come up with a better solution then your answer.
by Len Bullard January 27, 2009 10:23 AM PST
When the British forced the Chinese to keep open their opium trade, it was excused by noting the number of addicts who would suffer if it were closed. It degraded the society to the point of being a flashpoint for the Boxer Rebellion.

Quite simply, neither YouTube's nor Warner's business models are flawed. Renegotiation of content supply contracts are a standard business practice. This is precisely the point where major recording artists are able to wrangle a better deal from their label. The model that is flawed is the 'mashup' business model. It does not account for supply stoppage as is the case for any other business. The victim of this piece is not a victim. He was profitting by the supply arrangements made outside of his control.

As others are pointing out elsewhere on the web, you can't stand a heavy object on a cloud for very long. Cloud computing has this flaw in its very design if executed without contractually obligated Terms of Service that include this perfectly forseeable outcome.

As Obama said with that quote from Corinthians, grow up.
Reply to this comment
by sandonet January 27, 2009 10:55 AM PST
Len,

Tip of the hat to you. You make an excellent point.
by DJFrankNJ January 27, 2009 11:24 AM PST
Len, You sound like an intelligent guy, so please explain how a supply shortage is being created. A mother putting up a video of her baby while playing Prince in the background? A little girl singing a song that wasn't written by her? I would say that the majority of the work on You Tube could be removed for some copyright infringement. Should You Tube just disappear?
by rlpete2 January 27, 2009 10:53 AM PST
Ysabella Brave's accounts were suspended, even her talk channel. She had been signed to a Warner Bros. subsidiary, but apparently that didn't work out. She hasn't given her fans a detailed explanation, but perhaps she is confused not only about the legalities but even what she dare say.

What's weird is this: YouTube reinstated her channel, but only her original, selfproduced material is available. The dozens of videos of her singing to Karaoke tracks are gone. I am certain that WB does not own the copyright to those tracks, so WHAT is going on here? (I much prefer those informal cover performances, because her funloving, silly personality comes through.)

I've read on a YB fansite that Prince asked YouTube to take down a video posted by a fan of a concert performance in which he was covering a song by another artist. He was afraid he would be sued for copyright infringement. This is INSANE!!!
Reply to this comment
by jonesin5 January 27, 2009 2:02 PM PST
A common misconception of copyright law is that there is only one copyright per song. There are usually at least 3 copyrights per song: the author, the producer(s), the artist, and sometimes others as well. While I would happily ship the RIAA and the major recording labels off to a deserted island, never to be heard from again, they do have the right to enforce their copyrights.

One the one hand, we wouldn't necessarily have much of a music industry without the record labels as not all artists have the means of self producing albums. But at the same time, consumers have been quite arguably overcharged for music for years, don't appreciate having their self-produced videos removed or being sued. and generally have very little sympathy for either the RIAA or the labels. I know plenty of people who can fully afford to buy CDs who won't. They'll happily go to concerts and buy things there because more of that money supports the artists and bands directly than revenue from CD sales. It's a a form of protest in a way.

Some if this stems from not fully understanding the law, such as how many copyrights are attached to a piece of music and that even when you buy a CD, you don't ever acquire full ownership of the material on it. But at the same time, how smart is it to go after the very demographic that you want to purchase your product and then whine when you lose customers? Plenty of albums have only a handful of good songs on them, while others are loaded with hits. When it becomes hard for consumers to easily know the difference, and we can't sample first either by downloading or by listening the songs on sites like youtube, in conjuction with all the other crap the music industry has pulled over the last 9+ years, where's the incentive to support them at all?
by Copyrights_and_Campaigns January 27, 2009 12:07 PM PST
It's an interesting question whether people like Vidal actually had "permission" to upload the WMG music:

http://copyrightsandcampaigns.blogspot.com/2009/01/did-youtube-users-actually-have.html
Reply to this comment
by Len Bullard January 27, 2009 1:24 PM PST
Supply stoppage may be a better word. I'm on record (see the DRM discussion at Jon Taplin's blog) for telling the industry that suing customers for downloads is bad business. Most serious people in the business know that it's crazy to sue the customers and the artists I talk to consider it reprehensible.

The problem is an industry model where unit sales have been the accounting figure for dividing up the royalties. The web is a copying machine. That is well understood. And in fact, point of sale systems such as iTunes are working quite nicely. What happens to the copy after that is a problem but there is an inevitable downturn in the royalties to be collected there. A file sharing site is a different problem. On the web, the URI is the means of establishing the identity of the source of an authenticatible copy. Taking a copy and redistributing it without a license from a different URI is of course a copyright violation. Thus, shuttering sites such as Napster is the right thing to do.

What is going on with the licensing agreements is similar to mechanicals (what ASCAP and BMI collect from the restaurants and other venues that play recorded music) but isn't quite because the author put the music into a different form in a mashup. One assumes the Warner Bros/You Tube licensing covered that but if not, it should. Once again, the user of YouTube licensee arrangements is profiting within that arrangement and can either live with the terms or negotiate separately. The whole idea of licensing to YouTube is to enable others not to negotiate separately.

However, that is not the issue here. Mashups are. Both technically and legally, mashups live in the gray area of 'fair use' when done without licensing and this is one area of copyright that is badly in need of revision, and scrupulous oversight during that process given the habit of the music industry to take advantage of any opening to increase revenue.

But if someone is profiting by a mashup within a license, then they are subject to the terms of the license including sharing in stoppages. This is something that any sharp business builder will want to be aware of when building their application over third party services.

This is not about copyright. It is about licensing. Steps that will improve the situation:

1. Review the terms and conditions of copyright law to ensure they are realistic within the context of the means of distribution.

2. Revisit the copyright law for rights of collection over a term of time. Sonny Bono and Disney are nuts. These terms should be more limited instead of extended.

3. Revisit the fair use provisions and come up with an equitable formula that enables mashups and doesn't deprive the commons, but quit assuming the commons is anything you can copy digitally. That's theft pure and simple.

4. Understand the music industry is not simply artists and that not all artists tour or should tour. Many a good songwriter is a poor musician and many a fast hand Luke is a poor songwriter. The industry is an ecosystem of different talents and they all need to be paid. The current meme of 'tour for money; give away for promotion' will turn the music ecosystem into the National Football League just as M-TV turned it into a fashion industry.

5. The industry knows that it needs to concentrate on different sources of monetization. It also needs to develop new means for artists to collaborate and negotiate such that a mashup artist has a much easier means to Do The Right Thing via registration and permissions.

The fly isn't copyright; for the current industry, the fly is *auditability*. In a transparent system, the means of inflating the unit sales fades away and that takes some serious money out of some serious pockets. For now, the people most able to influence the industry are its top earners but they are also the ones who benefit by it and it will take a generation for new deals to be made.

But they must be made. Artists who understand how this works will have unprecedented control over their work and there are those who don't want that or need it. But it is happening and it can't be stopped legally or technically.

When I say, time to grow up, I mean everybody. A culture doesn't change because technology changes in the first order. Business changes when technology changes and the culture changes because the business changes. It is a second order effect. It takes time to work but it is relentless.
Reply to this comment
by Stuart_AV February 25, 2009 10:59 AM PST
Len,
You definitely have a lot of good things to point out but I think the generation growing up right now holds an extreme amount power and won't stop at anything less than virtually free (people do give money to artists when they offer their work for free). Itunes is a good model but Steve Jobs is the only guy in the world that could bring that kind of big time collaboration together and there's only one of him. It's just too easy to get music and this isn't just a minor shift its a radical reorganization due to world becoming "flatter". I got a chance to catch up with Corey (his video was restored today under fair use) and I wrote an article on it (aboutviral.com) reshaping the way we look at the three variables; technology,business and culture. Take a look, would love your opinion. http://aboutviral.com/video/star-wars-an-a-capella-vs-warner-music-group-the-saga-continues/
by boutitbenza_69_9 January 27, 2009 1:41 PM PST
and to add insult to injury, Youtube is now muting vids with music from WMG. which is bad and consider purely and act off censorship.
i hope the masses can tell Google to go f themselves and discover Dailymotion or Myspace's video site
Reply to this comment
by medezark January 27, 2009 1:57 PM PST
Copyright law is severely screwed. Copyright is intended to encourage creativity and reward the ARTIST, not a faceless corporation. Revert and revise copyright law to life + 10, only allow INDIVIDUALS to hold copyright (and their heir's for 10 years after their death). Completely disallow the transfer of copyright from the artist to another (except for the immediate heirs). Done.

Patents should be treated the same way, for the same reasons.
Reply to this comment
by opiapr January 27, 2009 6:29 PM PST
Music label and its mafia arm the RIAA still doesn't get it that by annihilating the consumer they will suffer more at the end. I could use a song for my family video that will generate the interest of someone in getting that song. GOOD for the labels but instead they diced to play mean and want my video down because of cr@pright violation I decide they are abusing so I decide never to pay for their music again. And I won't said I will be pirating their music I just will borrow someone's else's ipod or cd and hear it for a while then return it WOW they are really losing now. But it seem thats the way they like it.
Reply to this comment
by Inconnux January 27, 2009 10:21 PM PST
Glad I don't have stocks in WB. Idiots don't realize that their videos are FREE ADVERTISING. clueless drones running these companies have to realize that the 1950's are over.
Reply to this comment
by Wak_Em January 28, 2009 7:20 AM PST
Copyright Law: 93 pages and 42,000 words, that is just Chapter One. No wonder the consumer is at a disadvantage. Who thinks this stuff up?
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