Google's YouTube, the video-sharing site the internet search giant acquired a few months ago, has agreed to remove over 100,000 video clips produced by Viacom Inc, which were posted without permission.

New York-based Viacom demanded removal of the clips as YouTube was unwilling to reach what it called a ``fair market agreement' to compensate for using the content. Google said it would comply with the request.

Viacom, controlled by billionaire Sumner Redstone, owns MTV Networks and Nickelodeon.

YouTube, meanwhile, said in a statement that it prohibits users from uploading material that infringes copyrights and that it removes unauthorised content when notified.

YouTube had in November said that it had set aside over $200 million in stock from the $1.65 billion purchase price of YouTube to protect against lawsuits. Compensating content owners for the material that appears on video sites such as YouTube and Google Video may push up Google's costs.

YouTube last year signed licensing deals with music companies, including Warner Music Group, Universal Music Group and Sony BMG Music Entertainment. The company also has signed a deal with CBS Corporation for showing news, sports and entertainment clips.

Google shares fell 25 cents to $481.50 in evening trade on Friday. They have risen 4.6 per cent this year.