Financial terms of the deal were not disclosed. Like similar deals, the agreement calls for Sony BMG to receive a cut of advertising revenue, Yahoo said.
The deal also covers the distribution of music videos via Yahoo player applications and widgets that computer users can place on other Web sites.
The agreement marks the first time Sunnyvale-based Yahoo has reached a deal with a major recording company over licensing content in user-created videos.
Sony BMG, home to recording artists such as Britney Spears, Bruce Springsteen and Slayer, reached a similar licensing deal with Google Inc. last year. That agreement also includes Google subsidiary YouTube.
Sony BMG is a joint venture of Sony Corp. and Bertelsmann AG.
The Sony BMG-Yahoo deal reflects the popularity of computer user-created videos, which often include copyrighted content.
Last month, a coalition of major media and Internet companies issued a set of guidelines requiring Web portals that host user-generated videos - as Yahoo does - to use filtering technology to block clips with unauthorized content from being posted.
Independently, Yahoo is deploying video identification and filtering technology early next year, the company said.
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