The clips in question are reportedly of the bootleg variety which are captured without the a star's knowledge or approval. (plus they can't be fixed up like official video releases). "Prince believes strongly that as an artist the music rights must remain with the artist and thus copyrights should be protected across the board," reads a statement from the Prince camp.
He apparently believes that YouTube can stop copyright infringement on their site but choose not to. The statement says that YouTube "are clearly able (to) filter porn and pedophile material but appear to choose not to filter out the unauthorized music and film content which is core to their business success".
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