Legal Troubles
On April 27, 2007, Yahoo! defeated Sony BMG in a copyright infringement lawsuit involving LAUNCHcast's personalization features. At issue was whether or not LAUNCHcast's "personal radio station" constitutes an "interactive" service, which requires a negotiated license agreement with a record company, or a "non-interactive" service, which requires a cheaper "compulsory license" from SoundExchange. In an "interactive" service, users can play songs on demand, but with LAUNCHcast they can only influence whether or not a particular song appears in their station.
After a six-year litigation, a jury decided that LAUNCHcast was not required to negotiate licenses as an "interactive" service, and that the service's compulsory licenses as a "non-interactive" service were sufficient. The plaintiffs appealed the decision but on August 21, 2009 the United States Court of Appeals for the Second Circuit upheld the lower court's decision, finding that users did not have sufficient control over the playlists generated by LAUNCHcast to render it an "interactive service".
Read more about this topic: Yahoo! Music Radio
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