I stumbled across THIS blog from an attorney that practices entertainment and media law in India. Apparently MySpace has formed a partnership with MTV Networks that will allow MySpace to keep up clips of copyrighted material posted by users (instead of normaly being forced, under the Safe Harbor Provision, to take it down once they've been given notice of it). In exchange, MySpace will give the original creator(s) credit on the video and said creators will be given a cut of the ad income that MySpace will insert in/around the clips (some weird version of "royalties," I suppose).
It's an interesting idea, though a bit more administratively burdensome than simply taking down - there's additional content that needs to be added, and other videos will still need to be monitored and taken down (if not own by MTV Networks). Although, perhaps the financial benefits outweight the burdens. One thing is for sure - their lawyers are creative!
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