Is Pandora Really a Non-Interactive Service? Does It Really Qualify for Compulsory Licenses and Lower Rates?
What Is interactive radio? And why isn’t Pandora considered interactive radio?
Although Pandora has always regarded themselves as a “non-interactive” Internet radio service from what I can tell this assumption has never really been properly tested. The question is important because if Pandora is “interactive” -not non-interactive -it could no longer rely on compulsory licenses. Instead it would have to negotiate with rights holders to use sound recordings. Further it would no longer be able to engage in its patented direct licensing shenanigans and “create evidence” for the copyright royalty board. All of this would be a net plus for rights holders as Pandora has been relentless in trying to lower royalties paid to songwriters and performers. And besides a little good faith negotiation never hurt anyone.
I will say that I have always felt that Pandora oversteps the bounds of what should be considered a non-interactive webcasting…
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