Online video search and clipping service RedLasso just got a lifeline from Fox: it sealed a deal to carry video clips from the network’s owned-and-operated local TV stations, which registered users will be able to embed into their blogs. It’s an about-face for Fox, which, along with CBS and NBCU, sued RedLasso for copyright infringement last year, effectively shutting the company’s popular service down. 

SEE ALSO: RedLasso Suspends Open Access To its Site, For Now; Appeals To Bloggers

Bloggers flocked to RedLasso because the service let them edit and only use portions of news video clips they needed, but like many fledgling digital media-sharing startups, it failed to nail down revenue-sharing deals with the content owners first. The fact that Fox returned to the negotiating table shows that big media companies do want to work with innovative startups—particularly companies that boost distribution and exposure—as long as they can have some control over the terms. CEO Al McGowan told TechCrunch that the company had since settled all the network lawsuits, and that it was trying to broker new deals with them to get more local and national content in its library. Release.