The print WSJ says that YouTube and Warner Music have agreed to a novel deal whereby:

YouTube is developing an automated system to digitally identify copyrighted music and video uploaded by its users. It will then give a percentage of revenue from any ads that appear alongside those videos on YouTube's Web site, if their owners have agreements with YouTube and opt for that rather than having the videos removed.

It is interesting from several perspective -- ther use of a payment mechanism that requires nothing of consumers; the idea that music fingerprinting technology is reaching acceptable levels of reliability; Warner's willingness to play nice with YouTube and its ilk; the recognition that having music appear on YouTube has benefits as well as costs.

When Warner CEO Edgar Bronfman, Jr., spoke at PFF's 2005 Aspen Summit, he emphasized the need for the music labels to develop ways of cooperating with the new media.