Warner Music Signs Deal With YouTube As Universal Contemplates Suit

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Seems that mogul appearance in Sun Valley, Idaho is paying off for YouTube co-founder Chad Hurley.

Warner Music Group has agreed to distribute and license its copyrighted songs and other material through YouTube in a revenue-sharing deal. While Hurley called the deal a “landmark,” Warner is merely the latest media company to partner with YouTube — NBC, for one, struck a deal earlier this year with the company — though it is the largest music label to do so.

In what YouTube is calling the first agreement of its kind, Warner Music has agreed to license its songs to YouTube users — something Hurley and co. hope will lead to a sea change among major labels like Universal Music, which is contemplating a copyright infringement lawsuit against YouTube before the end of September, according to BusinessWeek.com.

As part of the Warner deal, YouTube has developed a royalty-tracking system, enabling Warner Music to review videos using copyrighted material.

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