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With a federal appeals court decision Friday, Yahoo’s LAUNCHcast music system was cleared of any wrongdoing and will not be forced to pay millions of dollars in licensing fees. The court ruled that the music system is not interactive enough that users could select particular songs in any order they wish. 
LAUNCHcast allows users to create stations that play music depending on a particular user’s preference. Users are able to rate songs, which then in turn make them more likely to be played on that users station. However, the order in which the songs play is still very random, which is why the court ruling came down as such.
LAUNCHcast will still be required to pay a statutory licensing fee which is usually much cheaper. This case has been in the legal system since 2001 when Sony Music Entertainment sued Launch Media Inc. (creators of LAUNCHcast).
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