This past week, YouTube announced a new advertising system in which semi-transparent ads would be overlayed on top of the video. Actually, this form of advertising is only new to YouTube. VideoEgg has been using the system for over a year. They’re not shy about that, either:

ytve.jpg

So, why is this significant? Well, first of all, YouTube gives no credit to VideoEgg for developing the software. Secondly, YouTube may encounter trouble in the future. VideoEgg claims it has a patent application in on the process.

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