Yahoo and Sony BMG Team on User-Generated Content

November 22nd, 2007 - 11:03 pm ICT by admin  

You make a video with a recent Bob Dylan song on the soundtrack, and upload it to Yahoo Video. Using such copyrighted material in user-generated content for Yahoo might now be legal, following an agreement announced between Sony BMG and Yahoo.

The agreement allows Yahoo users to incorporate some Sony BMG music into content that has been created by Yahoo users. It also extends an existing video-on-demand license that Yahoo has with Sony BMG and brings additional music videos to the Yahoo Music catalog.

In addition, Sony BMG music videos now will be available through Yahoo’s portals and affiliated Web sites through a Yahoo-branded player.

Sony BMG Music Video Deals

Sony BMG, whose ownership is split between Bertelsmann AG and Sony Corporation of America, has a global roster of artists that includes Bob Dylan, Avril Lavigne, Britney Spears, Bruce Springsteen, Alicia Keys, and others.

The Bertelsmann-Sony joint venture has been busy signing several music video deals for the Web. In October, for instance, Sony BMG said that it would offer streaming music videos and audio tracks from artists pages on MySpace, for such musicians as Dixie Chicks, John Mayer, and Beyonce.

The MySpace licensing involved an advertising revenue split between MySpace and Sony BMG. While the financial arrangement for the Sony BMG deal with Yahoo was not disclosed, industry observers have said that a similar revenue split is likely.

Legalizing a Common Practice?

Sony BMG’s interest in setting up arrangements for the use of its content online comes at a time when the media industry is trying to deal with user-generated content that contains protected material.

The provision in the Yahoo deal to allow protected material within user-generated content might help to legalize the common practice. Some major content companies have tried lawsuits, such as the billion-dollar suit against Google’s YouTube by Viacom. Recently, though, major companies…

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