HHR New Media, Entertainment and Technology Group

Turntable.fm is the recently launched online music service that caught the attention of the music industry, music-loving consumers and digital media commentators.  The service enables users to become DJs in a virtual music club divided into multiple rooms, each with enough space for five DJs and an audience of listeners.  The DJs take turns playing songs to the entire room, pulling from a wide catalog that Turntable.fm licenses through MediaNet.  Users then interact with each other, rating the last song played and discussing the music in an in-room chat.  In theory, this interaction guides the flow of the other DJs and helps to shape future music played in the room.

As unique as the service is though, it appears that many of its features were designed and implemented to enable Turntable.fm to operate as a “non-interactive” service under the Digital Millennium Copyright Act (“DMCA”), similar to an internet radio station, thus avoiding the need for direct licenses from the music labels.  For Turntable.fm, the distinction could mean the difference between sustaining a viable business or joining a long line of digital music services that were unable to survive because of the burden of paying license fees to the labels.  While it is too early to determine if this strategy will be challenged and/or whether it will ultimately prevail, Turntable.fm’s service clearly raises some unique legal issues. Continue Reading »

In a decision applauded by webcasters and lamented by the recording industry, the Second Circuit ruled last week that individualized radio stations–such as those offered by LAUNCHcast and Pandora–are not “interactive services” under the DMCA, freeing the webcasters from the potentially massive financial burden of having to pay licensing fees to record labels for the transmission of sound recordings as part of their services.  The decision was the first by a federal court of appeals to examine the hotly-debated issue.

The suit, originally filed in 2001 by several labels owned by Sony BMG, including Arista, Bad Boy and Zomba, alleged that LAUNCHcast, a webcasting service run by Yahoo’s Launch Media unit, which enables users to create “stations” that play songs within a particular genre or similar to a particular artist or song, violated provisions of the DMCA that required payment of licensing fees for the use of sound recordings in an “interactive” service.”  Continue Reading »

One copyright case that owners and licensors of digital content should be following closely in the coming months is the one brought against Universal Music Group by Stephanie Lenz, a Pennsylvania mom who posted a video on YouTube of her young son on a tricycle with Prince’s “Let’s Go Crazy” playing in the background. Universal submitted a DMCA takedown notice claiming that the video infringed its copyright in the Prince song. YouTube immediately removed Lenz’s video.  Lenz was able to get it restored seven weeks after filing a DMCA counter-notification asserting that her video constituted fair use of the song. Lenz then sued Universal for interfering with her legal right to post the video online. Continue Reading »

MTV Networks has signed agreements with MySpace and Auditude regarding the sale, display and distribution of advertising with user generated content posted to MySpace that contains MTV Networks’ programming.  HHR’s New Media, Entertainment and Technology team represented MTV Networks.  Click here for more details.

The Digital Millennium Copyright Act celebrated its 10^th anniversary this week.  That milestone provides us with an excuse to take a brief look at the statute and some ways it has affected the digital marketplace.

The DMCA was initially intended as the US implementation of two treaties adopted by the World Intellectual Property Organization (WIPO) in 1996 to establish rules for two evolving forms of digital media: music and computer software and databases.  However, as the legislation was introduced in Congress, additional provisions were added in response to lobbying efforts by two distinct constituencies.  

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