www.news.com.au/business/story/0,23636,20999206-462,00.html

YOUTUBE'S failure to complete a key piece of anti-piracy software as promised could represent a serious obstacle to efforts by Google, its new owner, to forge closer relations with the media and entertainment industry.

The video website, the internet sensation of 2006, promised in September the software would be ready by the end of the year. Known as a content identification system, the technology is meant to make it possible to track down copyrighted music or video on YouTube, making it the first line of defence against piracy on the wildly popular website.

YouTube's offices were closed for the New Year holidays. While providing no further details about when the system would be made formally available, it said tests of the system had been under way with some media companies since October 2005 and the system remained on track.

Mike McGuire, a digital media analyst at Gartner, said there was likely to be little patience for missed deadlines.

"The technology industry really has to start living up to the media industry's expectations," Mr McGuire said.

"If the delay lasts for more than a week or two into the new year, suggesting more than just a slight technical hitch, this is certainly going to be a serious issue."

Leading music companies have already made clear they see completion of YouTube's anti-piracy technology as an important step in any closer co-operation. Failure to build adequate systems to protect copyright owners could also add to the risk of legal action against the site.

Doug Morris, chief executive of Universal Music Group, hinted at legal action against YouTube late last summer, accusing both it and MySpace of being "content infringers (that) owe us tens of millions of dollars". Universal went on to sue MySpace but was one of the companies to reach a partnership with YouTube, partly based on the ability of its promised content identification system to track down copyrighted music.

The delay to the software could also spell wider problems for Google, which has been trying to negotiate partnerships that will give it access to content from a number of big media and entertainment companies.