"deny the rights of there own citizens to use that content in parodies"
Not true at all - "fair use" is in the copyright law. Still, "fair use" has limitations, true.
"share videos of events on the web such as wedding, birthday parties, street parties"
Same as before - unless the music in a wedding party is not in the background, but it's a clean soundtrack added later. Or if you use the video in a commercial way - in movies even background music has to be licensed.
BTW, you know I can't sell a photo I take of you at a street party (or any other situation) without your consent? Would you like I could?
And really, it's not your birthday party authors are worried about. Sure, the "dancing toddler" was a huge mistake done by the music industry - and that's why Google used it at its own advantage.
Biting the hand that feeds IT
