Copyright Law | Expert Legal Commentary

December 1, 2009

Arista Records v. Launch Media: Webcasting Service Is Not “Interactive” under U.S.C. 114

Arista Records, LLC et al v. Launch Media, Inc.

By Ryan Smith of Zuber & Taillieu and Jan Jensen

The Second Circuit U.S. Court of Appeals held that a webcasting service that provides users with customized internet radio stations is not an “interactive service” under 17 U.S.C. section 114(j)(7), and therefore need not pay individual licensing fees to sound recording copyright holders. In Arista Records, LLC et al v. Launch Media, Inc., 578 F.3d 148 (2nd Cir. 2009), the Court held that the degree of control that a user exercises over the songs to be played dictates whether the service is “interactive” as defined by the statute. Because the Launch Media service permitted users to select preferred genres and artists, but not specific playlists, the Court found that users did not exert the level of specific control required to define the service as “interactive.” The Second Circuit was the first Circuit court to rule on this issue.

About the Author

Ryan Smith is a Partner of Zuber & Taillieu, focusing on entertainment law.

Image Credit: ©iStockphoto.com/WillSelarep

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Companies Mentioned

Arista Records, LLC

Launch Media, Inc.

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MGA Entertainment (HK) Ltd.

Mattel, Inc.

American Society of Composers, Authors, and Publishers

MGA Entertainment Inc.

Northern Lights Products, Inc. d.b.a. GlowProducts.com

Litecubes, LLC

Poof Apparel Corp.

Derek Andrew, Inc.

Metro-Goldwyn-Mayer Pictures, Inc.

Geoffrey Productions, Inc.

Universal City Studios LLLP

Twentieth Century Fox Film Corp.

Turner Network Television LP, LLLP

Turner Network Sales, Inc.

Turner Classic Movies, LP, LLLP

Turner Broadcasting System, Inc.

The Cartoon Network LP, LLP

Paramount Pictures Corp.

NBC Studios, Inc.

Disney Enterprises, Inc.

CSC Holdings, Inc.

CBS Broadcasting Inc.

Cablevision Systems Corp.

Cable News Network LP, LLLP

American Broadcasting Companies, Inc.

Kamind Associates, Inc. a.k.a. KAM Industries

Westbound Records, Inc.

UMG Recordings, Inc.

All Headline News Corp.

Janice Combs Publishing, Inc. d.b.a. Justin Combs Publishing

American Software Development Company, Inc.

Bad Boy Records LLC

Affordable Video Systems, Ltd.

Bad Boy Entertainment, Inc. d.b.a. Bad Boy Records

Dream Games of Arizona, Inc.

Yahoo! Inc.

Frank Diana City Entertainment

Television Music License Committee

PC Onsite

SESAC, Inc.

Simon & Schuster, Inc.

RealNetworks, Inc.

AOL LLC f.k.a. America Online, Inc.

Facebook, Inc.

YouTube, Inc.

HSN LP

Focus Features, LLC

Windupbird Publishing Ltd.

Viacom, Inc.

HSN General Partner LLC