According to Billboard, key players in the independent label community are getting ready for a fight with YouTube as the licensing deal reportedly being offered to indies by the video sharing website falls somewhat short of that being offered to Warner Music, Universal Music and SonyBMG, who reportedly each received equity in YouTube as part of their licensing arrangements.
The trade magazine quotes one source from an "influential British indie" as saying: "People are getting very pissed off about YouTube's attitude. It's either sign [the contract] or suck it, and we know it's not the same deal that the majors have been offered. There's definitely a groundswell that we need to take action".
Meanwhile Simon Wheeler, Head Of Digital for London based Beggars Group has gone on record on the issue, telling Billboard: "We fully expect to be compensated fairly and on par with the larger companies, we will not accept second rate terms because we are smaller companies. If we have to take legal measures to protect our rights we will do so. If anyone uses our copyrights without a license, we as Beggars, and the independent sector as a whole, take it extremely seriously".
Despite some rumours that the indies were already issuing cease and desist letters against YouTube, it seems unlikely that such letters have been sent, or will be sent in the short term. The independents will most likely look to the newly created independent digital rights negotiation organisation Merlin to use its collective bargaining power to force YouTube into offering a similar deal to that given to the major record companies. But, with that new organisation only launched at MIDEM last week, it will be a few months before it will seriously consider going legal with any unlicensed content providers.
Alison Wenham of the Worldwide Independent Network, which created Merlin, says negotiations with the likes of YouTube are "in process" while adding: "Merlin is not at the stage where talks could break down. The reality is that it won't start to be properly operational until about June".
YouTube, meanwhile, tried to play down reports of looming conflict between itself and the independent sector, telling Billboard: "YouTube enjoys working with all content creators, including record labels small and large. Partnerships with content creators and the community are crucial to our success, and in the coming months, we look forward to continuing to help our partners monetize the content they create".