Copyright Laws: Monetization And Fair Use Explained

Copyright laws are a complex set of regulations that govern the usage and distribution of creative works, and they apply regardless of whether the content is monetized or not. When it comes to online content, especially on platforms like YouTube, copyright claims and strikes can have significant ramifications for content creators, even if they are not seeking to monetize their videos. The moment a creator uploads a video that utilizes someone else's copyright, they risk receiving a copyright claim. This claim can result in various outcomes, including demonetization of the video, with all advertising revenue going to the original creator, or even the removal of the video. To avoid copyright claims, creators are advised to use original content or obtain legal permission to use copyrighted material. While copyright laws apply regardless of monetization, the consequences of infringement may differ based on whether the content is being used for commercial gain.

Copyright claims and strikes are different

Copyright laws apply whether content is monetized or not. A copyright claim is issued when a channel owner uploads something that they do not own the copyright to. This can result in the following:

• The copyright holder monetizes the video by placing ads and claiming the revenue.
• The copyright holder blocks the video in certain territories, countries, or worldwide.
• The copyright holder does nothing.

Copyright claims only apply to the videos in question and do not affect the entire channel. It is important to note that a copyright claim is not a penalty. If a copyright claim is disputed, it is important to have a valid reason or evidence, such as a license or fair use for educational purposes.

A copyright strike, on the other hand, is much more serious and is issued when the copyright holder chooses to remove the video from the platform. This results in the video being blocked everywhere, and no one can monetize it. Additionally, the channel owner may lose access to certain features on their account, such as monetization, the ability to upload longer videos, and live streaming. If a channel receives three copyright strikes, it will be terminated, and the owner will be banned from creating another channel.

In summary, while both copyright claims and strikes relate to copyright infringement, they differ in their impact and severity. A copyright claim primarily affects the monetization of a specific video, while a copyright strike can lead to the removal of a video and have broader consequences for the channel owner's account privileges and standing.

Monetization and views

Copyright laws apply whether or not your work is monetized. As soon as you upload a video containing media protected by copyright, you put yourself at risk of receiving a copyright claim. This could be music, movie clips, images, or speech.

YouTube's Content ID system identifies copyrighted content and alerts the user. The owner of the copyrighted content can then decide to monetize, track, or block the content. Typically, they will choose to monetize the video, meaning any advertising revenue will go to them, and the video will be demonetized for the uploader. The owner may also restrict the video from appearing in certain countries or on certain websites or devices, which could affect the number of views the video receives.

In some cases, copyright owners may choose more aggressive policies, resulting in the video being blocked or removed entirely. Alternatively, they may decide to track the video, which is less common but still allows the uploader to monetize their content.

It is important to note that receiving a copyright claim does not affect your entire channel, only the specific video in question. However, if you receive three copyright strikes, your channel will be terminated.

While monetization does not directly impact the number of views a video receives, copyright claims and strikes can still negatively affect your channel's performance and ability to monetize. Therefore, it is advisable to use original content or obtain legal permission to use copyrighted material to avoid any issues.

Legal permission to use music

Copyright laws are territorial, and they vary from country to country. However, the fundamentals of copyright law are generally the same.

Copyright protection exists from the moment an original work is "fixed" in a tangible medium. For example, fixation occurs when a song is recorded in an audio file or when a musical work is notated in sheet music or a digital file. You don’t need to do anything else for your work to be protected by copyright. As the owner of your music, copyright gives you the right to make and sell copies, distribute those copies, make new works based on your work, and, with some limitations, publicly perform or display the work.

There are two distinct copyrighted works: the musical composition (lyrics and musical score) and the sound recording (what you actually hear). A synchronization license ("sync" license) is a license that allows you to use the musical composition in an audio-visual work. A sync license would allow you, for example, to record a cover version of a song and use it in your audio-visual creation. However, it doesn't give you the right to use the sound recording made popular by the recording artist. In order to use that recording, you’ll need a master use license. Together, a master use license and a sync license will allow you to add your favourite songs to films and video games.

To get permission to use a copyrighted song, you’ll need to find the artist or owner of the song and contact them. Most of the time, you contact musicians directly, but you can contact their music publishers or record labels instead. There are also several music rights organizations that can grant those licenses or provide contact information to a music publisher or record label that can grant those licenses. For example, SESAC, a music rights organization based in the United States, provides sync licenses for many popular songs.

If you plan to use someone else's work, always compare all of your intended uses with the rights of the other work's rightsholder and make sure you are lawfully engaging in each use. Trying and failing to contact the rights holder is not a substitution for permission.

Fair use

Copyright laws are complicated, and while there are some exceptions, it's important to understand the basics of fair use to avoid legal trouble.

Four Factors of Fair Use

When determining whether a use is fair, courts consider the following four factors:

• Purpose and Character of the Use: Courts typically focus on whether the use of copyrighted material is "transformative", i.e., whether it adds new expression or meaning to the original material. Commercial uses are generally less likely to be considered fair, but it is still possible to monetise a video with fair use material.
• Nature of the Copyrighted Work: Using material from primarily factual works is more likely to be considered fair use than using purely fictional works.
• Amount and Substance of the Portion Used: Borrowing small portions of an original work is more likely to be considered fair use. However, if the borrowed portion is considered the "heart" of the work, even a small sampling may weigh against fair use.
• Effect on the Potential Market: Uses that harm the copyright holder's ability to profit from their original work are less likely to be considered fair. Courts have sometimes made exceptions for parodies.

Monetisation and Fair Use

Monetisation and fair use are separate issues. Fair use is a legal concept, while monetisation is governed by YouTube's internal policies. A video may qualify for fair use and still be demonetised by YouTube, and vice versa.

Examples of Fair Use

• Criticism and Commentary: Quoting or excerpting a work for review or commentary purposes is usually considered fair use. For example, a book reviewer quoting limited passages from a book in a critique.
• News Reporting: Summarising an article with brief quotations in a news report is fair use.
• Research and Scholarship: Quoting a short passage from a scholarly work for illustration or clarification is acceptable.
• Nonprofit Educational Uses: Teachers photocopying limited portions of written works for classroom use is generally permitted.
• Parody: Parodies that ridicule well-known works by imitating them in a comic way are usually considered fair use.

Copyright Claims and Strikes

While fair use provides some protection, it is important to understand the consequences of copyright claims and strikes on YouTube. A copyright claim occurs when your video contains media protected by copyright, and it gives the owner the option to earn ad revenue from your video. A copyright strike, on the other hand, is more severe and can lead to video removal and even channel termination after three strikes.

In conclusion, while fair use provides some leeway in using copyrighted material, it is important to understand the legal and platform-specific implications to avoid infringement and ensure compliance with relevant policies.

Copyright claims and YouTube Partner Program

Copyright laws do apply even if your content is not monetized. If you are found to be using copyrighted material, you can face a copyright claim or a copyright strike.

Copyright Claims

Copyright claims occur when your video contains media protected by copyright. This could be music, a movie clip, images, a speech, or anything else that is not yours or that you do not have permission to use. As soon as you upload a video, YouTube's Content ID system looks for media matches. If it finds one, you are alerted and have several options:

• Remove, replace, or mute the copyrighted medium from your video.
• Share revenue with the copyright holder.
• Dispute the copyright claim.

If you receive a copyright claim, YouTube is saying that you can use the copyright-protected content, but the owner can choose to earn ad revenue from your video. The owner can also restrict the video from being viewed in certain countries.

Copyright Strikes

A copyright strike is more serious than a copyright claim. It means the owner of the intellectual property is asserting their rights and can have your YouTube video removed. You may also lose streaming privileges for 90 days if the strike is on a live stream. If you receive three copyright strikes, YouTube will terminate your channel. In extreme cases, you may face legal consequences.

YouTube Partner Program

To join the YouTube Partner Program, you must meet several requirements, including having more than 1,000 subscribers, accumulating 4,000 Watch Time hours in a 12-month period, and complying with all of YouTube's rules, including copyright policies. YouTube uses human reviewers to assess every channel, and having copyright claims or strikes can negatively impact your application.

If your application to the YouTube Partner Program is rejected due to copyright claims, you will be notified via email and can reapply after 30 days. However, YouTube will not tell you specifically what is wrong with your channel, and you will need to work it out yourself.

To avoid copyright claims and strikes, use original content that belongs to you. This will ensure you don't have any issues with monetizing your channel.

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