Creator Science Episode #280
How to LEGALLY Protect Your Channel with YouTube Lawyer Tyler Chao
Host: Jay Clouse
Guest: Tyler Chao
Date: October 28, 2025
Episode Overview
This episode dives deep into the increasingly complex world of legal protection for YouTube creators. Entertainment attorney and YouTube creator Tyler Chao shares war stories, practical advice, and optimism for creators navigating copyright strikes, community guidelines, fair use, licensing, intellectual property, and business structure. Jay and Tyler explore what every creator must know to run a “clean business,” avoid legal landmines, and ensure their creative work and income stay protected.
Key Discussion Points & Insights
1. The Rising Threat of Copyright and Community Strikes
- Trend: Both copyright and community strikes are notably increasing across YouTube and other platforms.
- YouTube's Stance: Even the biggest creators can’t expect special treatment when hit with a strike; YouTube requires disputes to be resolved directly with IP holders.
- Platform Comparison: Unlike Meta and TikTok, YouTube at least offers a counterclaim and appeal process, though outcomes are unpredictable.
"You can be the biggest YouTuber in the world, and YouTube will still say, I can't help you. You have to go resolve this yourself."
— Tyler Chao (02:32)
2. Understanding Strikes: Copyright vs. Community
- Copyright Strikes: Issued by IP holders for unauthorized use (video, music, B-roll, etc.). A strike remains for 90 days; three in 90 days risks channel deletion.
- Community Strikes: Tied to violating YouTube’s guidelines; more platform-to-creator than IP issues.
- Claims vs. Strikes: A claim might take your revenue (sometimes 30–40%), while a strike can demonetize or imperil your channel.
"The claim might equal 30 or 40%. And so if you make $1,000, 30 or 40% goes to the IP holder."
— Tyler Chao (05:25)
"You can take the video off... the strike still sits for 90 days."
— Tyler Chao (06:50)
3. The Copyright Strike Process: Step-by-Step (10:54 – 14:47)
- Filing a Strike: The IP holder submits a detailed strike, typically for each video.
- Response: The accused can counterclaim, providing evidence of fair use, ownership, or licensing.
- Review: YouTube decides whether the counterclaim is valid. If so, the IP holder has 10 days to legally sue; otherwise, the strike is removed.
- Channel Deletion: Three strikes within 90 days can lead to channel removal, though restoration is possible after lengthy disputes.
"YouTube will either accept or reject the counterclaim. If they accept it, then the IP holder has 10 days to initiate a lawsuit... it's a very high bar to meet." — Tyler Chao (11:54)
4. Practical Defense: Running a “Clean Business” (17:29 – 19:29)
- Licensing: Always seek permission for others' IP—written agreements trump casual emails.
- Music: Use legitimate music libraries (Epidemic Sound, etc.).
- Structure: Separate email addresses for different channels prevent losing everything at once.
- Understanding Rules: Actually read YouTube’s Community Guidelines and Terms of Service.
"I tell creators to run a clean business. And when you run a clean business, that means you do things the right way."
— Tyler Chao (17:29)
5. Licensing and Permission: How and Why (19:29 – 21:29)
- Best Practice: Written, signed licenses—even if just for a token sum.
- Negotiation: Many disputes can be resolved by payment and credit.
- Proof: Even email permission is helpful if a dispute arises, but a licensing agreement is even stronger.
"Having that email would be very helpful... if they for some reason were to change their minds."
— Tyler Chao (20:29)
6. What IS Fair Use? (21:29 – 26:46)
- Litigation-Only Defense: Fair use is not a shield you can preemptively evoke; it’s for courtroom defense.
- Key Factors:
- Whether use replaces the original in the market (commercial harm)
- Transformation (education, commentary, critique)
- Amount used (less than 5 seconds generally safer but not foolproof)
- Are you making money?
- IP Holders: All are different. Some studios (like Disney) pick battles; some (like Nintendo) are aggressive.
"Fair use is one of the most misunderstood concepts on YouTube... creators think fair use is this bulletproof shield."
— Tyler Chao (21:46)
"Whoever owns the IP has 100% right to put a copyright strike."
— Tyler Chao (24:55)
7. Low-Hanging Legal Fruit & Business Structure (27:11 – 36:35)
- LLC and Bank Accounts: Should be set up when you’re earning ($2K–$5K/y).
- Insurance: General liability and media insurance (defamation).
- Trademarks: Check availability early; rebranding is costly!
- Contracts: Everything IP-related—contractors, employees, editors—should have specific agreements.
- Employee vs. Contractor: Misclassification is a huge risk; settlements/penalties can be severe.
"I'm in the middle of rebranding two huge creators right now because they didn't do the trademarks properly."
— Tyler Chao (36:00)
"90% of all disputes in litigation for any business... has to do with employees when they leave, when they exit."
— Tyler Chao (28:50)
8. Partnerships, Ownership & Exits (31:53 – 36:35)
- Start with Paperwork: Define channel ownership, revenue splits, exit processes from the outset.
- Think Like a Business Owner: A YouTube channel is an asset—protect it like any other.
"A YouTube channel is potentially more valuable than real estate these days."
— Tyler Chao (33:10)
"These are easy solves that a lot of creators aren't thinking about..." — Tyler Chao (35:26)
9. Thumbnails and Photographs: A Hidden Danger (36:35 – 40:25)
- Photographer’s Rights: Photographers own their images. Some (like Getty, celebrity photographers) aggressively pursue infringers.
- Best Practice: Always license images where possible, especially famous or high-value shots.
- Transformation: Some leniency exists (e.g., heavy edits, parodies) but risk remains.
"Getty is very litigious. Like, do not take any Getty images without licensing it."
— Tyler Chao (39:39)
10. Risk Management & Final Mindset (40:25 – 42:53)
- Litigation Is Sometimes a Cost of Doing Business: Especially for big creators, keep a legal fund.
- But, Don't Be Paralyzed: Most creators won’t ever get sued or heavily penalized.
- Empowerment: Legal risks can be managed; the potential rewards and freedoms of YouTube entrepreneurship are unmatched.
"If you're not getting sued, then you're not doing big business."
— Tyler Chao (41:09)
"I want creators to walk away from this conversation not being scared... everything is solvable."
— Tyler Chao (41:59)
Notable Quotes and Memorable Moments
- Tyler Chao: "I've noticed an interesting trend... Copyright strikes and community strikes are on the rise in a very big way." (00:53)
- Jay Clouse: "So even for somebody who has what we would perceive as like, the highest clout and influence on the platform possible, YouTube is very, very strict." (01:51)
- Tyler Chao: "You have to follow our copyright rules, our community guidelines, our terms of service." (18:46)
- Jay Clouse: "Sometimes I hear from creators that they think they can use a very short snippet and credit it... 'Well, it's fair use.' Talk to me about what fair use is." (21:29)
- Tyler Chao: "Fair use is not a real thing... It's a real thing that you use in litigation." (21:46)
- Tyler Chao: "A YouTube channel is potentially more valuable than real estate these days." (33:10)
- Tyler Chao: "Getty is very litigious. Like, do not take any Getty images without licensing it." (39:39)
- Tyler Chao: "Our YouTube channel is what we make of it... there’s so much freedom and power in that." (41:59)
Timestamps for Critical Segments
- 00:53: Why strikes are on the rise / No special treatment for big creators
- 05:00: Difference between claims and strikes; how claims affect revenue
- 10:54: Full walkthrough of the copyright strike/counterclaim/lawsuit process
- 17:29: How to "run a clean business" and avoid common pitfalls
- 21:46: The real meaning (and legal context) of "fair use"
- 27:11: Business structure basics—LLCs, insurance, trademarks, and contracts
- 31:53: Why partnerships go wrong without written agreements
- 36:35: Thumbnails, photo use, and the risk from photographers and agencies
- 40:25: Managing legal risk, mindset for sustainable, empowered creator growth
Actionable Takeaways for Creators
- Always seek and document permission for any third-party IP.
- License music/photos from reputable sources; avoid high-risk sources (Getty, famous photographers).
- Understand that email permission is helpful, but a licensing agreement is best.
- Read and periodically review YouTube’s policies.
- Use separate emails for different channels to reduce collateral damage.
- Establish your LLC and business insurance once you hit $2K–$5K/year.
- Draft contracts for everyone creating content for you.
- If collaborating, clarify ownership and revenue splits on paper, before problems start.
Closing Sentiment
Tyler Chao leaves creators with a message of practical optimism: The legal landscape is complex, but manageable. Be proactive, learn the basics, and focus on building a business that’s both creative and legitimate. “Everything is solvable,” Tyler reassures, and the power and freedom of being a creator today are worth the extra diligence.
This recap skips ads, sponsor segments, introductory/outro remarks, and strictly covers the episode's substantive content.