Web music companies counter sue record labels over playlist rights

The webcasters struck back on Friday by counter sueing the RIAA in a San Francisco court in an effort to get legal protection for the services that allow users to customise the playlist of songs they hear.

The lawsuit does not seek damages, but instead is looking to the courts to clarify whether the services that these companies provide fall within the legal definition of non-interactive radio. Radio style webcasters can use record label’s songs under a statutory licence. They then pay the industry royalties at a rate set by a federal arbitration process.

At present, services where the listener can chose what songs they want to hear do not qualify. They have to apply for individual licences from record labels in a process that can often be costly and complex.

The webcasters argue that their services only allow limited consumer input, and thus should qualify for the statutory licence. However, the record companies maintain that any service where listeners can customise programs to any degree is interactive.

Jon Potter, executive director of the Digital Media Association, says that in the past the US Copyright Office has failed to clearly define which types of Web services were eligible for statutory licences. He is quoted by Reuters as saying, “ our only remaining option is to ask the court to interpret the Digital Millennium Copyright Act so that media companies, technology developers, and investors can gain needed clarification of the statute”.