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Some people call them internet fads but what exactly are memes?

A meme is anything that is imitated by people.
That's a very broad definition. For more on the larger idea of memes, check out Wikipedia. http://en.wikipedia.org/wiki/Meme

Know Your Meme is about cataloguing, documenting, and analyzing Internet-based memes; preferably very specific yet wide-spread memes.

They can be sourced from popular media but ought to be recontextualized and not be simple repetition.

Let me google that for you.