Digital Media Association Celebrates Victory for Internet Media and Radio Innovators

Washington, D.C. (August 21, 2009) – In a great victory for digital media and internet radio innovators and consumers, the 2nd Circuit Court of Appeals has affirmed the earlier District Court jury verdict that found LAUNCHcast (Yahoo! Inc.) to be "non-interactive" under Section 114 of the Copyright Act.   Jonathan Potter, Executive Director of the Digital Media Association (DiMA), issued the following statement.

"After ten years of record industry threats and litigation, DiMA is thrilled that the Second Circuit confirmed what Internet radio services and listeners already know - that consumer-influenced radio promotes the discovery of new music, promotes artists and delivers to fans an experience that benefits all participants in the music industry.

Hopefully this verdict will clear a path for a new wave of internet radio investment and innovation.”

2nd Circuit Court of Appeals Ruling LAUNCHcast

Background

BMG's Arista Records sued LAUNCHcast (and continued the suit after Yahoo! acquired Launch Media), claiming tens of millions of dollars in damages because LAUNCHcast did not seek radio performance licenses directly from record labels.  Launch believed (as the court upheld) that its consumer-influenced radio service did not violate personalization prohibitions that would disqualify it from the statutory digital radio licenses administered by SoundExchange, and so it did not need record label permissions to operate its innovative radio service.