The New York-based U.S. Court of Appeals for the Second Circuit has ruled against the record companies in their copyright lawsuit against the Launchcast internet music service. The court held that Launchcast wasn't interactive enough to trigger the highest level of copyright hassle and expense. The key fact was that the Launchcast listener had only limited control over what he or she was going to hear when he or she tuned in. The court declared:

In short, to the degree that LAUNCHcast’s playlists are uniquely created for each user, that feature does not ensure predictability. Indeed, the unique nature of the playlist helps Launch ensure that it does not provide a service so specially created for the user that the user ceases to purchase music. LAUNCHcast listeners do not even enjoy the limited predictability that once graced the AM airwaves on weekends in America when "special requests" represented love-struck adolescents' attempts to communicate their feelings to "that special friend." Therefore, we cannot say LAUNCHcast falls within the scope of the DMCA’s definition of an interactive service created for individual users.

Apparently the court decision means that many internet radio services will be able to survive in their current formats by paying a reasonable fee, as opposed to being forced to pay much more to the record companies (or being put out of business). Such news is music to our earbuds.