youtube.jpgWarner Music has agreed to make its library of music videos available to YouTube, and to license its songs to the millions of users who upload their videos to the site.

This could be a huge deal for the San Mateo video sharing start-up. It is the first time that an established record company has agreed to such a deal. YouTube has been shunned in part by fears that YouTube videos have been infringing on copyrights. Universal Music, the largest record company, last week even threatened to sue YouTube.

Warner and YouTube will share advertising revenue sold in connection with the video content. However, there are many unanswered questions. Apparently, Warner has the right to veto the use of some videos, and the revenue share details are uncertain. Royalty fees are also being discussed. More details later today.