YouTube Signs Music Royalty Deal for UK

YouTube said Thursday that it had agreed with the MCPS-PRS Alliance, the UK organization that distributes royalties to the record industry, on a system to compensate artists for music using on the UK version of the site.

About 10 million pieces of music would be licensed for an undisclosed sum, which analysts say is likely in the tens of millions of pounds. The deal would also shelter the social video site from any possible legal actions as a result of music used on its site.

Additionally, officials said that it would also cover content that is available through the site, such as music videos.

"Whether it is music videos, user uploads or other audio visual content, our agreement will allow our 50,000 songwriter, composer and music publisher members to be paid when their creative talents are being enjoyed on YouTube's service across the UK," MCPS-PRS CEO Steve Porter said.

The agreement on music royalties is the first permanent one for YouTube anywhere in the world. While the company has reached similar deals here in the US, they are primarily a stop-gap measure aimed at keeping both sides happy while a full agreement is ironed out.

MCPS-PRS said it will figure out how to distribute royalties based on estimates of how many times a particular artist's content is viewed, although it admitted it may be difficult to monitor YouTube's vast library.