CANNES, France: Advertisers remain cautious about running commercials on internet TV because of continuing concerns over copyright clearance, says a senior figure at online TV service Joost.

The business, launched by the founders of Skype [WARC News: 03-May-07], has attracted 700,000 viewers during its test stage, as well as signing up high-profile marketers such as Procter & Gamble, Vodafone, Nike and L'Oréal.

However, speaking at the Cannes Lions International Advertising Festival, Joost's Eric Clemenceau, vp advertising sales, said: "Advertisers won't show next to content with any rights issues. The first thing they ask us is: 'Have you cleared the rights for this?'"

Joost will start running ads in July and has begun copyright negotiations with a number of broadcasters in an effort to avoid the problems experienced by Google-owned video sharing site YouTube, which has been the subject of a number of lawsuits for allegedly breaking copyright law.

Data sourced from Financial Times online; additional content by WARC staff