In Arista Records v. Launch Media, the RIAA lost its copyright infringement case against a company which provides its users with individualized internet radio stations. The company, Launch Media, is now owned by Yahoo.
The US Court of Appeals rejected the RIAA’s argument that the users’ ability to customize the radio stations made them “interactive services” rather than “radio stations”, and affirmed the ruling of the Court below, finding that the internet radio stations in question did not provide copyrighted sound recordings on request, and did not transmit a program specially created for the user.
Opinion of US Court of Appeals for Second Circuit affirming judgment for defendant