WMG music has been missing from YouTube since December when the label pulled all its tunes from the user-contributed video service, claiming Google wasn’t fairly compensating the record company for its music.

But both sides are now in agreement and WMG recordings and music videos will reappear on YouTube in the coming weeks.

While the video aspect of the agreement appears obvious, the part about allowing recordings on YouTube may not seem all that crystal clear. At least, not to the casual YouTube surfer.

But the site’s users upload recordings almost as much as they upload videos. One of the popular aspects of YouTube is the ability for fans to upload their own tributes to their favorite artists – often a montage of photographs while a song plays in the background.

Then there’s the more ambitious projects, like the following clip from the University of Quebec in Montreal featuring students lip-syncing to the Black Eyed Peas’ “I’ve Gotta Feeling.” Presumably, the WMG/YouTube agreement will cover these creative endeavors as well.

One of the more interesting aspects of the agreement is about the advertising. Instead of relying on Google to place ads, WMG will employ a third party agency to handle advertising. This gives the label more control as well as a larger chunk of shared revenue from advertising. Or so says Associated Press, attributing that info tidbit to an anonymous insider.

Meanwhile, both sides are saying they’re extremely happy about the new deal, as this statement from WMG indicates:

“We’re pleased to announce that we’ve reached a new and expanded agreement with Google and its YouTube subsidiary that will bring WMG content back to the service as early as the end of the year. Under the agreement, members of the YouTube community will not only be able to access videos and other music-related content from Warner Music Group recording artists and songwriters, but will also gain access to an enhanced user experience on YouTube with a feature-rich, high quality premium player and enhanced channels.”

Click here for the Warner Music Group Web site.

Click here for YouTube.