Andre Yoskowitz
24 Aug 2009 0:15
A New York appeals court has ruled in favor of Yahoo this weekend, claiming its Launchcast Internet radio service is not required to pay royalties to copyright holders for songs it plays. The losing party was Sony BMG Music.
The claim by Yahoo was that Launchcast did not give users enough controls to be considered "an interactive service," which would require the royalty fees to be paid.
The judges added that Yahoo would only have to pay licensing fees to SoundExchange, the nonprofit organization that collects royalties for musicians.
"It's an immediate loss for the recording industry," notes Rey Sanchez, chairman of the department of music, media and industry at the University of Miami and a voting member of the National Academy of Recording Arts and Sciences, via Reuters.
"If the service had been deemed interactive, Yahoo would have to negotiate fees with every record label to use their songs. Instead, it only has to pay licensing fees."
Sony declined comment while Yahoo said nothing more than that they were pleased with the "fair" ruling.