The service can spot a match even if the video clip is degraded, altered or is only a small slice of the original video, according to Philips Content Identification, a unit of the Netherlands' Philips Electronics NV. Philips has yet to announce customers who will be using the MediaHedge system, although copyright holders are expected to be required to subscribe to the service in order to have their content included in Philips' database.

YouTube and MySpace both face legal action from various parties concerned that users of the sites are flaunting copyright laws. The Japan Society for Rights of Authors, Composers and Publishers recently joined the chorus of groups demanding YouTube find a way to stop people uploading copyrighted video. YouTube's policy has been to remove clips that infringe copyright after it receives complaints, but under new owner Google it insists it's working on a better system.

YouTube has already agreed to employ audio signature technology to detect copyrighted music, but Google has also set aside a $US200 million war chest for YouTube indemnification.{moscomment}