Posted December 12, 2006 8:41 am by with 0 comments

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Business 2.0 explains why the expected influx of law suits against YouTube, with its acquisition by Google, never materialized. Instead, Google helped bring credibility to the video sharing site and discovered ways to work with the big TV networks.

For example, take a look at the deal struck with CBS.

As part of the deal, CBS agreed to offer free video clips for downloading. In return, the media company gets to sniff around YouTube for any content bearing its copyright. CBS can then choose between removing the offending clips or getting a cut of the revenue YouTube generates from any advertising linked to the clip.

That’s brilliant! YouTube gets sanctioned clips from CBS and in return CBS gets to decide if a video clip should be pulled or if it will help them generate buzz and/or money.