Here’s Why The Music Labels Are Furious At YouTube. Again.

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You’ve heard this song before: The music industry is mad at YouTube.

In the old days, the music business used to complain that YouTube took their music and didn’t pay them. Now the complaint has changed: Now the music guys say YouTube doesn’t pay them enough.

The music labels have been grousing about YouTube for a while now, but they have recently turned up the volume.

Last month, the RIAA, the labels' American trade group, lobbed a volley at Google’s video service, arguing that YouTube doesn't pay a fair price for all the music it gives its users for free. The IFPI, the label’s global trade group, should have a report out shortly which repeats the same charge. (UPDATE: Here's the IFPI report.)

The complaints come as the big three music labels — Universal Music Group, Sony and Warner Music Group — are set to renegotiate contracts with YouTube.

It would seem like the best way to get more money from YouTube would be to get a better deal this time around. But the labels say their bargaining power is reduced by the 1998 Digital Millennium Copyright Act, which gives broad protection to YouTube and other services that rely on content that users upload.

I asked RIAA head Cary Sherman to explain his industry’s beef with both the DMCA and with YouTube. Here’s an edited excerpt of our conversation. There’s also a response of sorts from YouTube at the end.

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