Techcrunch announces that Warner Music Group will allow its music to be used in YouTube videos, but retain the right to yank it if it chooses.

…the caveat that Warner will have effective veto power over videos using their music is particularly interesting. In effect it’s just a technological realization of the long standing policy reality – YouTube has willingly pulled copyrighted content on request for some time. While DRM has been understood as a prerequisite for online distribution of major label content, this announcement seems to indicate a switch in responsibilities. Instead of the distributor locking down the content by default, use is open by default and can be closed at the rights holder’s discretion. It’s a very real recognition of the promotional power of copyrighted content being reused in original art.

This is progress, but I wouldn’t advise you to use the tunes in your next video. There are two issues. First, I doubt many pay-for-content sites (Revver, Metacafe) will have the same arrangement with Warner Music Group (click to see labels it represents). I hope I’m wrong. Second- this will limit the videos syndication beyond YouTube because you’re not effectively the owner of the content when Warner Brothers has a “veto” clause.