Instead of removing copyrighted videos uploaded by its users, MySpace will begin using a new technology that is able to identify and locate pirated videos before inserting advertisements into each video.

All revenue generated will be shared among copyright holders, which will allow the video clip to remain online.

"Auditude is opening the floodgates for users to program video on MySpace and ensure copyright holders get paid," said Jeff Berman, MySpace marketing president.  "In one fell swoop, Auditude and its partners are empowering consumers and building a better business model."

MySpace is working alongside Auditude, an online advertising technology, will also include MTV in the advertising deal.  

An "attribution overlay" will be added to each video -- a link to buy the episode, and other information will be included.  Furthermore, Auditude's software also lets MySpace add information and e-commerce links into video clips to accompany any scrolling advertisements at the bottom of the screen.

The overlay will appear at the beginning of the video for 10 to 15 seconds, and then will be followed by a regular ad.

Each company involved remained silent over questions of how much they could make from the deal, only saying it's "significant."

MySpace also is working with Time Warner's Warner Bros., which would again greatly expand the video library it could attempt to monetize.

MySpace and other sites, such as YouTube, normally remove copyrighted material after a copyright holder submits an official request.

YouTube also has bumped heads with copyright holders, as the company had several lawsuit issues with Viacom over the years.  In 2007, YouTube found itself in trouble after Viacom filed a $1 billion lawsuit against the company, saying some videos on the site infringed on copyright patents.