Los Angeles Business Journal

Fullscreen Settles Music Royalty Dispute

By Tom Dotan Wednesday, January 8, 2014

YouTube network Fullscreen has settled its lawsuit with a music publisher’s association over the use of unlicensed music in its channels’ videos.

The agreement will allow members of the National Music Publishers’ Association to collect royalties on music used in previous videos posted by Fullscreen-affiliated channels. The value of those back royalties was not disclosed. Going forward, Fullscreen video makers who want to include music are required to go through YouTube’s direct license arrangement with publishers.

The suit filed by publishers in August alleged that clips on Fullscreen’s network of YouTube channels had long used their work without compensation. As the online video medium has grown, the battle between publishers and video creators has intensified. Last year, the publisher’s association reached a similar settlement with Fullscreen competitor Maker Studios.

Fullscreen is among several so-called “multichannel networks” that aggregate existing YouTube channels under one banner. The networks pitch themselves to creators as a way to make more money online, often through channel promotion and sponsorship opportunities. The Culver City company said its videos reach more than 30 million unique viewers a month.