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RIAA Loses Case Against Launch Media

NewYorkCountryLawyer writes "The RIAA's claim that personalized internet radio stations were 'interactive services' was flatly rejected 'as a matter of law' by the US Court of Appeals for the Second Circuit, in Arista Records v. Launch Media. In affirming the jury's verdict in favor of the defendant, Launch Media — acquired during the lawsuit by Yahoo! — the Court said it did not even need to concern itself with possible errors in the jury instructions, since the trial judge should have directed a verdict for defendant 'as a matter of law' on the question of whether the radio stations were 'interactive services.' At pages 23-42 of its 42-page opinion (PDF), the appeals court carefully analyzed how Launch Media's personalized internet radio stations worked, and noted that the users could neither obtain and play on demand a particular song, nor obtain the transmission of a particular program, thus rendering the RIAA's claim of 'interactivity' meritless."

31 of 86 comments (clear)

  1. "RIAA loses" by T+Murphy · · Score: 5, Insightful

    I can't wait for the day that headline becomes so commonplace I get bored of it.

    1. Re:"RIAA loses" by NotBornYesterday · · Score: 4, Funny

      It's music to my ears.

      --
      I prefer rogues to imbeciles because they sometimes take a rest.
    2. Re:"RIAA loses" by Hurricane78 · · Score: 2, Interesting
      --
      Any sufficiently advanced intelligence is indistinguishable from stupidity.
    3. Re:"RIAA loses" by GumphMaster · · Score: 4, Funny

      Be careful! You are perilously close to infringing their rights to the sound of their own defeat :)

      --
      Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
    4. Re:"RIAA loses" by Jurily · · Score: 2, Insightful

      RIAA: making Microsoft look ethical since 2003.

      (The BSA lets you go when you only pay for the software you actually use.)

    5. Re:"RIAA loses" by NotBornYesterday · · Score: 2, Funny

      Since it is taking place in the courts, wouldn't it be a matter of public record, and therefore in the public domain? Next /. headline: RIAA's swan song goes Open Source!

      --
      I prefer rogues to imbeciles because they sometimes take a rest.
    6. Re:"RIAA loses" by Anonymous Coward · · Score: 2, Insightful

      I can't wait for the day that headline becomes so commonplace I get bored of it.

      It won't. They may be delusional, but they're not stupid. If they stop winning, they won't keep throwing cash at the lawyers.

    7. Re:"RIAA loses" by NewYorkCountryLawyer · · Score: 2, Informative

      If they stop winning, they won't keep throwing cash at the lawyers.

      I wouldn't say they keep "winning". They've had 2 trials, in 1 of which the defendant admitted liability. In most contested cases they've discontinued the case, scurrying away with their tails between their legs.

      --
      Ray Beckerman +5 Insightful
  2. Pandora? by Miros · · Score: 2, Interesting

    Does this mean that Pandora does not have to pay per performance interactive service royalty rates anymore? Isn't this huge for Pandora type services?

    1. Re:Pandora? by icebike · · Score: 4, Insightful

      Pandora has some semblance of interactivity that regular streaming radio does not.

      You can vote song/artists off the island, and fine tune the selection to your particular tastes.

      Still, you might be on to something here because you still can't order up a song at will, nor know what is coming ahead of time.

      --
      Sig Battery depleted. Reverting to safe mode.
    2. Re:Pandora? by Miros · · Score: 2, Insightful

      Right. I just read over the whole decision, and other than the details of the specific implementation, the overall logic of the random/unpredictable nature of the playlist is what makes it non-interactive. In the LAUNCH service in question, users rated songs individually as well, and were also able to skip them as you are in Pandora. I think this stencils pretty directly onto the other service, right? users are unable to choose the specific song in either case, only preferences.

    3. Re:Pandora? by DevConcepts · · Score: 4, Funny

      Right. I just read over the whole decision......

      You read all 42 pages??? You must be new to /.! Nobody reads it all here.

  3. Pandora by SydShamino · · Score: 2, Interesting

    Will this lead to lower rates for Pandora? From the summary they sound like a similar service, yet the fact they aren't being sued implies to me that they've "paid up" at the higher, interactive rate.

    I give Pandora referrer credit for every song I buy from Amazon or iTunes, but since Pandora can't track referrer income to particular uses, I still get hit up to pay their RIAA-tax subscription money or GTFO their service each month. I know Pandora has to do it to survive, but if this ruling lowers their rates maybe they can do away with the audio ads or raise the monthly cap.

    --
    It doesn't hurt to be nice.
  4. Re:It is interactive... by gEvil+(beta) · · Score: 4, Funny

    Most people would claim that monkeys are luminous if it somehow hurt the RIAA.

    Is this close enough?

    --
    This guy's the limit!
  5. Re:It is interactive... by TheGreenNuke · · Score: 3, Funny

    Most people would claim that monkeys are luminous if it somehow hurt the RIAA.

    You missed this story didn't you. All living things emit visible light at low levels. So with that in mind, the RIAA must be doomed.

  6. Re:It is interactive... by lorenlal · · Score: 4, Insightful

    I have a request from Slashdot based on this post.

    We need a -1: Stupid.

    It's not trolling, nor really flamebait, nor offtopic, or redundant. Also, offtopic just isn't quite enough.

    As for why I feel that way: Interactive, the way you see it, would mean that radios are interactive. Which would break the whole idea of broadcast to start with. After all, I set my dial to a channel and listen. If I don't like it, I can switch stations. In fact, I know what genres the stations tend to play, so I can add them to a "favorites" list called presets if I like them. The broadcast stations react to listeners by tracking how many they have and adjusting content to keep and expand that base. And, if listeners disappear, a station will react to that input (or lack thereof) and shutdown or change genres.

    Oh, even better, many of these stations "take requests" from some listeners and then play those songs. In that regard, broadcast radio is *more interactive* than the services presented by Launch, and Pandora.

    So... I don't know what exactly you were going for in your post, but this has nothing to do with just hate for the RIAA... This is a case where we finally see someone applying common sense and *law* to a lawsuit.

  7. Court Costs Paid? by Frosty+Piss · · Score: 3, Interesting

    The last line of the ruling says: The district court's judgment of May 16, 2007 in favor 15 of Appellee is hereby AFFIRMED with costs.

    Does this mean the RIAA pays the victim's court costs?

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:Court Costs Paid? by Legal+Penguin · · Score: 2, Informative

      Yes, but note that "costs" are not the same as "fees". Court costs are quite minimal -- filing fees and such -- it's not the same as attorney's fees and the other expenses related to litigation.

      Incidentally, to clarify the question above, "as a matter of law" means that the question could have been resolved by the judge on a motion to dismiss (without reference to the facts and assuming all facts to be true as alleged in the complaint), rather than on a motion for summary judgment (which relies on statements of "undisputed fact") or at trail by the finder of fact.IAAL; IANYL.

      --
      "The true administration of justice is the firmest pillar of good government." - George Washington
    2. Re:Court Costs Paid? by NewYorkCountryLawyer · · Score: 3, Informative

      The last line of the ruling says: The district court's judgment of May 16, 2007 in favor 15 of Appellee is hereby AFFIRMED with costs. Does this mean the RIAA pays the victim's court costs?

      In that context, it just referred to certain costs incurred in connection with the appeal. But under the Copyright Act the plaintiffs may indeed be liable for defendant's attorneys fees.

      --
      Ray Beckerman +5 Insightful
  8. Re:It is interactive... by Toonol · · Score: 2, Informative

    You're absolutely correct.

    However, it may also be clearly true that in the way interactivity is defined for the purpose of the relevant law, it is not. Legal definitions are generally more precise, usually different, and sometimes at odds with common usage. Sometimes legal definitions change depending on the exact law.

    For instance, "responsibility" may have different meanings in civil and criminal law, and both are different from what is meant in normal English. Every field has specific technical jargon.

  9. Re:What does "as a matter of law" really mean? by Sycraft-fu · · Score: 2, Interesting

    The difference is what the words would imply. A matter of law is one where the question (and/or answer) are related to the law on the books. The specific facts of the case aren't relevant, because the law itself is what we are talking about here. A good example would be if a mechanic was charged with 1st degree murder for forgetting to check if the breaks on a vehicle were good. The facts of the case, if the mechanic actually did check or not, wouldn't be relevant. The reason is that as a matter of law, that isn't murder. So the charge isn't sustained on the very face of it, regardless if the facts alleged are true.

    A matter of fact is then one where the specific facts are what is in question. The charges are valid per the law, in that if the facts are as alleged they'd support the charge. The question is now if those are indeed the facts or not.

    So when something is dismissed as "a matter of law" what it means is that the party bringing the action (criminal or civil) has no idea what they are talking about. They are trying to misapply the law. Even if everything they say about the defendant/respondent is true, it still wouldn't sustain the charges because of the law.

    Also one of the important factors is who decides this. In a court, the judge is the judge of law, the jury the judge of fact. What that means is the judge decides if a case has the merit to go to trial, and what is relevant to allow in under the law and so on. They decide how the law applies to the case. The jury then just decides the facts of the case. They are presented with evidence, and told what standard to apply. Their job is to decide if the facts presented sustain the charges or not.

  10. Re:What does "as a matter of law" really mean? by jasonwc · · Score: 2, Informative

    An issue can be decided as a matter of "law" or "fact". If it a factual matter, than the final arbiter will be the factfinder which is usually a jury, but can be a judge, in a bench trial. However, some issues are considered to be so obvious, or of a public policy or legal nature, such that Congress or the appellate courts have deemed it appropriate to leave the decision up to the judge, rather than the factfinder (jury). This is a very important distinction. First, if an issue is a matter of law, an appellate court can decide the issue "de novo" - meaning that they consider the issue anew, and are not bound by the decision of the lower court. In contrast, appellate courts are required to respect the factual determinations as the factfinder is deemed to have superior information - the ability to view the witnesses' testimony and ascertain its credibility rather than reading a written transcript, for example. So, to apply the standard to this case. If the factfinder at the trial level found that the service was interactive, the appellate court would have no obligation to respect that determination if it was a question of law, however if it was a question of fact, than the factual determination must be respected unless it constitutes an abuse of discretion or is clearly erroneous.

  11. Re:What does "as a matter of law" really mean? by StevenMaurer · · Score: 3, Interesting

    I am not an lawyer either, but the concept between a "matter of law" and a "matter of fact" is pretty basic.

    Matters of fact: "I didn't do it." "Yes you did."

    Matters of law: "Of course I did it; it ain't against the law, bub!" "Yes it is".

    In this case, the fact that internet radio stations were broadcasting copyrighted material (for which they had the proper licenses) was not in doubt. The question was one of law: is that an "interactive service" or not, which has additional restrictions on it?

  12. Re:What does "as a matter of law" really mean? by NewYorkCountryLawyer · · Score: 3, Informative

    What does "as a matter of law" really mean?
    How does it differ from "as a matter of fact"?
    IANAL - nor can I afford one to answer this question.

    :) It means that there is no factual "issue" for the jury to resolve. I.e., that based upon the known facts, it is automatic that this is not "interactive" within the meaning of the statute.

    No charge.

    --
    Ray Beckerman +5 Insightful
  13. Irrelevant -- service already defunct by rwade · · Score: 2, Informative

    This may or may not impact Pandora, but the service at the center of this dispute was eliminated last spring by Yahoo.

  14. Re:What does "as a matter of law" really mean? by NewYorkCountryLawyer · · Score: 4, Informative

    I am not an lawyer either, but the concept between a "matter of law" and a "matter of fact" is pretty basic. Matters of fact: "I didn't do it." "Yes you did." Matters of law: "Of course I did it; it ain't against the law, bub!" "Yes it is". In this case, the fact that internet radio stations were broadcasting copyrighted material (for which they had the proper licenses) was not in doubt. The question was one of law: is that an "interactive service" or not, which has additional restrictions on it?

    In the context in which it was said in this case, it meant simply that there was no factual issue, that under the conceded undisputed facts, it was not interactive, no matter how you slice it.

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    Ray Beckerman +5 Insightful
  15. Re:It is interactive... by not-my-real-name · · Score: 2, Insightful

    Your opinion is irrelevant, as is mine. The only people who's opinions matter, that is the appeals court, decided that it isn't interactive.

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    un-ALTERED reproduction and dissimination of this IMPORTANT information is ENCOURAGED
  16. Re:It is interactive... by Bensam123 · · Score: 2, Insightful

    A lot of people would rate -1: Stupid for things they don't agree with regardless of the content of what is being posted.

  17. not quite by hawk · · Score: 4, Informative

    I'm a lawyer, but this isn't legal advice. If you get your legal advice here, you may as well just sign away your house, children, and car now and savve on legal fees . . .

    Anyway . . .

    That's not quite right; the facts as alleged by that party do matter. "As a matter of law" means that the evidence doesn't matter. Such a ruling means that even if they could prove everything that they alleged, they would still lose.

    In this case, they found that the judge did indeed err--but not by giving the wrong instructions, as the RIAA alleged, but by even letting the jury hear the case, as no reasonable jury could have found for the RIAA. (Yeah, and here we get a bit murky with two overlapping "as a matter of law" usages, one on the allegations, and one on the strength of the evidence. Life's rough :)

    hawk, esq

  18. Re:What does "as a matter of law" really mean? by hawk · · Score: 3, Funny

    >No charge.

    *shudder*

    C'mon, a country lawyer should know to never point that out or bring attention to it :)

    hawk, esq.

  19. Re:Grooveshark by bruce_the_loon · · Score: 2, Informative

    Only if they argue that they should be paying the statutory fees instead of the per-song licensing.

    If they're happily/unhappily ponying up the per-song license fees, they're in the clear.

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