You just have to love the music industry's reaction to online videos. According to a recent article by the Wall Street Journal, The Recording Industry Association of America recently pushed for an aggressive stance against amateur videos using commercial songs. The article reports that some legal experts say the video sites are generatlly protected as long as they comply with any so-called "take down notices sent by music companies." Most sites (like YouTube) will remove material when "formally requested to do so," and that protects them from liability.
YouTube and other video sites recently entered negotiations with Broadcast Music Inc. and American Society of Composers, which collect royalties on behalf of songwriters when music is played in public or broadcast.
My favorite innovative quote goes to Alex Zubilliga, Warner Music's Executive Vice President for Digital Strategy: "I'm not going to embrace these guys and try to figure out a legitimate business model for two years."