Arista Records, LLC v. Launch Media, Inc
Arista Records, LLC v. LAUNCH Media, Inc. (578 F.3d 148, 2d Cir. N.Y. 2009) concerned claims by Arista Records, Bad Boy Records, BMG Music, and Zomba Recording LLC ("BMG") that the webcasting platform operated by LAUNCH Media, Inc. ("Launch") infringed on BMG’s copyrights in sound recordings. Central to the dispute was the interpretation of "interactive service" under 17 U.S.C. § 114, as amended by the Digital Millennium Copyright Act of 1998 ("DMCA"). A determination that Launch’s service was interactive would obligate it to pay individual licensing fees to BMG; if not interactive, only a statutory fee established by the Copyright Royalty Board would apply.
The United States Court of Appeals for the Second Circuit affirmed the trial court’s judgment favoring Launch, holding that its webcasting service did not meet the legal criteria for an interactive service.
Background
Launch provided an online radio platform through its LAUNCHcast webcasting service, enabling listeners to create personalized stations featuring music by genre or tracks similar to chosen artists or songs. This platform, currently operating as Yahoo! Music Radio, streamed copyrighted sound recordings owned by BMG, which possesses exclusive rights for digital public performance of these works.
Trial court proceedings
On May 24, 2001, BMG initiated litigation against Launch in the United States District Court for the Southern District of New York, alleging violations of the DMCA (17 U.S.C. § 114) based on Launch’s operation of an interactive service that willfully infringed BMG’s sound recording copyrights from November 1999 through May 2001. The jury was instructed to decide whether LAUNCHcast qualified as an interactive service under 17 U.S.C. § 114(j)(7). The verdict favored Launch.
Issue
The pivotal question was whether a webcasting platform offering customized internet radio stations qualifies as an interactive service pursuant to 17 U.S.C. § 114.
Ruling of the court of appeal
On March 17, 2009, BMG appealed to the United States Court of Appeals for the Second Circuit, asserting that LAUNCHcast should be classified as an interactive service. On August 21, 2009, the appellate court upheld the lower court’s ruling, determining as a matter of law that the webcasting platform did not constitute an interactive service.
The court concluded that LAUNCHcast fails to provide a "specially created program" under § 114(j)(7), given that it does not afford users sufficient control to generate playlists predictable enough to supplant music purchases and thereby diminish record sales.
Discussions of interactive service
Statutorily, an interactive service is defined as one that "enables a member of the public to receive a transmission of a program specially created for the recipient, or on request, a transmission of a particular sound recording," selected by or for that recipient. LAUNCHcast qualifies as interactive only if users can (1) request and listen to specific sound recordings on demand or (2) receive programs "specially created" for them. Since LAUNCHcast does not allow users to request individual songs at will, it fails the first condition.
The court underscored Congress’s intent to differentiate services permitting users to select exact tracks—which could potentially reduce music sales—from those that do not offer such control. The decisive issue was whether LAUNCHcast generates programs "specially created" for listeners. Although playlists vary per user, their unpredictability means users are unlikely to cease purchasing music. Consequently, LAUNCHcast does not satisfy the DMCA’s criteria defining an interactive service that necessitates individual licenses for sound recordings.
Subsequent developments
On January 25, 2010, the Supreme Court of the United States declined to grant certiorari.
Related cases
- United States v. Am. Soc'y of Composers (In re Cellco P'ship), 663 F. Supp. 2d 363 (S.D.N.Y. 2009)
- Sony BMG Music Entertainment v. Tenenbaum, No. 10-1947 (1st Cir.)
See also
External links
- Arista Records, LLC v. Launch Media, Inc. on CourtListener
- Arista Records, LLC v. Launch Media, Inc. at FindLaw
- Arista Records, LLC v. Launch Media, Inc. via Justia