news 
Pandora has won a key development in a years-long legal battle with comedians who claim the streamer must pay the equivalent of publishing royalties for spoken-word content. According to a new report, it does not need to do so.
The report, written by Suzanne H. Segal, a former federal magistrate judge, says that the comedians gave Pandora an “implied license” to their spoken-word material by allowing the company to stream sound recordings of their comedy shows without protest. This implied license allows Pandora to continue streaming the content without paying additional royalties.
The report also states that the comedians did not just remain silent for years while Pandora used their routines, but instead actively encouraged it. According to Segal’s report, several comics testified that they intended to convey all necessary rights for their record companies to sell their sets to streamers like Pandora, which should have covered any additional spoken-word licenses.
This implies that Pandora was justified in its actions and did not infringe on the comedians’ copyrights by streaming their routines. The new report is not a final decision, but as an influential document, it could influence the judge’s decision if adopted.
The comedians have already urged Judge Mark C. Scarsi to reject Segal’s report, arguing that she misinterpreted key evidence and legal precedents. In response, they say her position would mean that any payment for one copyright could create an implied license on a completely different and separate unlicensed copyright.
Pandora will file its own brief in the coming weeks, supporting Segal’s findings.
Source: www.billboard.com
