Yahoo! Wins Appeal Over Music Fees
August 24, 2009 at 4:36 AM (PT)
YAHOO! reeceived a favorable ruling from a three-judge panel, which ruled FRIDAY that the company will not have to pay additional fees each time it plays a song on its Internet radio service LAUNCHCAST. This ruling affirmed an earlier verdict.
In what some are calling a defeat for the music industry, the ruling said YAHOO MUSIC was not "interactive" enough to require YAHOO! to renegotiate with record labels for the rights to play songs over the Internet. Instead, according to REUTERS, it merely has to pay licensing fees to digital music rights organization SOUNDEXCHANGE.
The initial lawsuit arose in 2001, when a division of SONY sued LAUNCH MEDIA claiming the service was was violating a law requiring those who provide "specific playlists" of songs over the Internet to pay rights holders.
YAHOO won the case in 2007, but SONY appealed, resulting in FRIDAY's decision.