YouTube issues me a "non-takedown" notice for violating copyright for machinima video?

I just got a notice of violation of copyright from YouTube for one of my machinima videos, which you can see above.  Instead of the usual takedown notice though, here's what they sent me:

UMG has claimed some or all audio content in your video Elfay Pinkdot's Jazz Party in Second Life. This claim was made as part of the YouTube Content Identification program. Your video is still live because UMG has authorized the use of this content on YouTube. As long as UMG has a claim on your video, they will receive public statistics about your video, such as number of views. Viewers may also see advertising on your video's page.

The copyright holder, Universal Music Group , is asserting ownership of the audio track that I use on the machinima video noted above.  I'm clearly in the wrong, since I don't own the rights to use this song in my video.  But instead of yanking the video, UMG is allowing me to continue to use the track, as long as they can put advertising alongside it on YouTube. 

I guess this represents a positive step forward?

The full notice from YouTube follows.  (Yes, I know I should have turned off the UI before shooting the video.  It was one of my first machinima!)

The full notice from YouTube:

Dear YouTube Member:

UMG has claimed some or all audio content in your video Elfay Pinkdot's Jazz Party in Second Life. This claim was made as part of the YouTube Content Identification program.

Your video is still live because UMG has authorized the use of this content on YouTube. As long as UMG has a claim on your video, they will receive public statistics about your video, such as number of views. Viewers may also see advertising on your video's page.

Claim Details:

                                        
                                        
                                        

Copyright owner:	UMG
Content claimed:	Some or all of the audio content
Policy:	Allow this content to remain on YouTube.                 Place advertisements on this video's watch page. Applies to these locations: Everywhere

UMG claimed this content as a part of the YouTube Content Identification program. YouTube allows partners to review YouTube videos for content to which they own the rights. Partners may use our automated video / audio matching system to identify their content, or they may manually review videos.

Sincerely,
The YouTube Content Identification Team

Comments

[Overman]

Very interesting. I guess it's about as positive a step as you can expect under the circumstances.

[liam]

I'd say this is a definite improvement over the standard takedown order. UMG could simply tell youtube to remove the material you created without giving you a say in the matter. They could also hit you up with a lawsuit for copyright infringement (i think - i'm no lawyer), which is wrong on so many levels. But judging from your post it seems they are coming to terms to the fact that we will mash up their content whether they allow us to or not. They've seen a value in what you've created and instead of demanding $$$ from you, they're demanding (and getting) access to the metrics your creation generates and the ability to profit from that attention via ads. This way, I think, they feel they're getting something out of the deal too. It's better than a lawsuit and your work still gets to be seen by others.

Is it a step in the right direction? Not sure. But it is a step away from the nightmares of copyright wars and the lawsuits they usually bring.

[liam]

I'd say this is a definite improvement over the standard takedown order. UMG could simply tell youtube to remove the material you created without giving you a say in the matter. They could also hit you up with a lawsuit for copyright infringement (i think - i'm no lawyer), which is wrong on so many levels. But judging from your post it seems they are coming to terms to the fact that we will mash up their content whether they allow us to or not. They've seen a value in what you've created and instead of demanding $$$ from you, they're demanding (and getting) access to the metrics your creation generates and the ability to profit from that attention via ads. This way, I think, they feel they're getting something out of the deal too. It's better than a lawsuit and your work still gets to be seen by others.

Is it a step in the right direction? Not sure. But it is a step away from the nightmares of copyright wars and the lawsuits they usually bring.

[ILL Robinson]

VERY interesting... we'll see this leads. (c:

[EXTEFTSWICE]

You gained a new reader here! Your blog is full of wonderful information!

[NueNue]

You gained a new reader today, I find your blog very interesting.

[Cash Advance]

You have a wonderful blog here! I'm going to add you to my feed for sure!

[NueNue]

You gained a new reader today, I find your blog very interesting.

[MuayThaiMad]

Just received one of these myself, for a travel video I made. Scared the cr*p out of me at first, but googled the first sentence of the email and got your site. My thanks to you and Overman for the explanation and analysis - I'm less worried now. I too think this is a smart way to deal with what te copyright holders seem to see as "fair use" of their works (it's not as if we're making a profit with our videos).

[Cialissa]

Very Good