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YouTube Monetization and Reused Music: Copyright Claims, Revenue Limits, and Demonetization Risks

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11 Min

Last updated

04 Sep 2025

YouTube Monetization and Reused Music: Copyright Claims, Revenue Limits, and Demonetization Risks

The right music can boost your video. The wrong one can wipe out your earnings.

On YouTube, using reused or unlicensed music often leads to copyright claims, revenue limits, or full demonetization. Even a few seconds of the wrong track can cost you.

In this blog, we break down how music impacts monetization, and what smart creators do to avoid claims, strikes, copyright risks and lost income.

Music = Risky Business

Think using a hit song will boost your video? There are options for that, but…

YouTube’s Content ID system scans every upload for copyrighted audio. If it detects a match, it can automatically place a copyright claim, no warnings, no appeals upfront.

Remember to learn how Content ID works.

A copyright claim isn’t the same as a strike, but it still hurts:

  • Your ad revenue may be blocked or rerouted to the rights holder.
  • In some cases, your video gets muted or removed in certain regions.
  • You may be allowed to share revenue, but only if the track is licensed via Creator Music or another pre-cleared source.

Strikes are much worse.

One DMCA (Digital Millennium Copyright Act) takedown = one strike.

Second strike?

If you get a second copyright strike before the first one expires, your channel stays restricted for another 90 days. You're on YouTube’s radar, with limited control and fewer options.

Three strikes? That’s game over.

Your channel is automatically deleted, all content removed, and you’re banned from creating new channels.

In serious cases, legal action may follow, and if you lose, you could face major fines.

Learn more on how to avoid DMCA strikes.

According to YouTube Help, claims come from Content ID or manual reporting. Strikes come from formal takedown requests, usually filed by a music label, publisher, or distributor.

Here’s the breakdown:

  • Claim = monetization hijacked or limited.
  • Strike = channel at risk, monetization frozen, repeat = termination.

So, don’t let one song ruin your channel. Play it smart.

One Song Can Sink You

What Happens to Your Money?

You upload. You get views. But then, a copyright claim hits.

Now your YouTube ad revenue goes to the music rights holder, not you.

Even if it’s just a few seconds of background music, your earnings are redirected or blocked entirely.

This is how creators end up with:

  • Revenue limits.
  • Demonetized videos.
  • No payouts, despite thousands of views.

Your video might stay public, but you won’t make a dime.

Some claims offer revenue sharing through Creator Music, but only if you're using pre-approved, licensed tracks.

You often don’t find out there’s a copyright issue until after the video is already live and getting views. But once a claim hits, the earnings are gone. To keep your revenue, you need full music rights before you publish.

No license = no revenue. Simple as that.

Fair Use ≠ Free Pass

Fair Use” Won’t Always Save You

Fair use lets you use copyrighted content in some cases, but it’s risky.

YouTube won’t protect you unless your video clearly qualifies (like for commentary or parody). Even then, the rules vary by country, and only courts make the final call.

Using a short music clip under fair use is not always safe.

Fair use only applies in narrow cases, like parody, critique, or commentary. And even then, it’s not guaranteed.

Just adding background music or trimming a track doesn’t make it fair use.

YouTube won’t step in to protect you if the rights holder files a claim or takedown.

Bottom line:

  • Fair use is a legal defense, not a free pass.
  • If your content isn’t clearly transformative, you’re likely to lose your revenue.
  • Don’t rely solely on fair use. Use music you’re licensed to monetize.

Safe Music Options That Won’t Get You Flagged

There are two ways to go about this. YouTube’s built-in tools, or third-party royalty-free libraries.

Let’s start with what YouTube already gives you.

What’s the Deal with Creator Music?

Is that the same thing as YouTube’s Audio Library? Not quite. YouTube actually has two separate things going on.

Audio Library is the free one.

Royalty-free background music, loops, ambient tracks, and sound effects. Totally safe to use and monetize. Just check if a track requires attribution, and you’re good.

Creator Music is the newer thing.

It’s for creators in the YouTube Partner Program (YPP), and it lets you use actual popular songs, the kind people recognize, without getting demonetized.

You can either:

  • Pay upfront and keep full revenue.
  • Or opt for revenue sharing (if the track allows it).

Each song has its own licensing rules. So check the details before you publish.

Because once the video’s live, you don’t get a do-over.

Quick recap:

  • Audio Library = free and simple.
  • Creator Music = mainstream music with monetization terms attached.

Third-Party Royalty-Free Music Libraries

You’re not limited to YouTube’s tools. There are dozens of third-party libraries built specifically for creators. Here are three of the most popular:

1. Epidemic Sound 

The go-to for royalty-free music. Over 32,000 royalty-free tracks. 60,000+ sound effects. Every single one is 100% cleared for YouTube.

That means:

  • No strikes.
  • No takedowns.
  • No “surprise” claims stealing your revenue.

You’re free to monetize across YouTube, Instagram, TikTok, and more.

2. Foximusic

Want to pay once and never worry again? Foximusic is built for creators who want full control over their music. No subscriptions, no fine print.

Every track comes with a royalty-free license that’s crystal clear:

  • Monetize anywhere (YouTube, Facebook, TikTok, you name it).
  • No recurring fees.
  • No copyright headaches.

3. Soundstripe

Looking for that polished, studio-quality vibe? Soundstripe has it.

You get unlimited access to tracks crafted by real artists — even Grammy winners. All cleared for monetization.

The AI editing tool lets you shape the track to match your video’s rhythm. Loop it, trim it, restructure it. Your call.

And  you can use their tracks across all major platforms: YouTube, TikTok, Instagram, Facebook.

4. Artlist

Want cinematic quality without the Hollywood budget? Artlist delivers.

Thousands of high-quality tracks, all cleared for YouTube monetization.

That means:

  • Unlimited downloads.
  • Lifetime use for each track you download.
  • One simple subscription, no usage limits.

Great for creators who want to sound professional - without spending hours checking licenses.

5. Uppbeat

Need free music that won’t mess with your monetization? Uppbeat is your best bet.

They offer a generous free plan - with tracks cleared for use on YouTube.

Perks include:

  • No copyright claims on YouTube (with credit).
  • Premium plan removes all limits and credit requirements.
  • New music is added every week.

Budget-friendly and beginner-safe.

How to Use Music Legally on YouTube

Want to avoid claims, strikes, and lost revenue? Here’s how to stay on the legal side of YouTube’s music rules:

  • Check the YouTube Music Policy. Before using any song, search it in YouTube’s policy database to see if it’s blocked, monetized, or restricted.
  • Use licensed tracks. Stick to music from YouTube Creator Music, the Audio Library, or trusted royalty-free sources. These are cleared for use and monetization.
  • Avoid reused or recycled content. YouTube can demonetize videos that rely on repetitive or previously used music, even if it was fine before.
  • Read licensing agreements carefully. If you're using music from a third-party platform, make sure the license covers YouTube usage, monetization, and commercial use.

Legal music = clean monetization. Always know your rights before you hit upload.

Don’t let cash gaps slow your growth

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Using Content ID to Protect Your Own Tracks

If you’re a musician or composer, YouTube’s Content ID isn’t just a threat, it’s a powerful tool.

By registering your music through a trusted distributor, you can:

  • Track where your music appears across YouTube.
  • Automatically claim or monetize videos that use your sound.
  • Protect your intellectual property (IP) from unauthorized use.

It’s how top creators and labels control their catalog, and earn from it.

Own your music? Then own your monetization, too. Content ID gives you the leverage.

Why Wait for Payday?

Monetize Safely, Access Cash Flexibly

If you manage to stay clear of claims and strikes, your revenue should be sitting in the YouTube analytics. But you don’t have to wait weeks to access it.

With the free MilX app, you can get it any day in 40+ currencies, 10+ payout methods, zero hassle.

You can even access up to 6 months of your earnings upfront.

What you get with MilX:

  • Transfer YouTube earnings any day, not just once a month;
  • Access up to six months of future revenue in advance;
  • Withdraw in 40+ currencies and 10+ payout methods - including crypto;
  • Send payments to your team or collaborators with zero fees;
  • Use your funds immediately to invest in content, ads, gear, or growth.

Explore your options. Download the free MilX app.