What's Happening?
Pandora is not required to pay additional royalties for streaming comedy routines, according to a new report in a lawsuit involving comedians like Robin Williams and Lewis Black. The report, released on July 22, states that comedians gave Pandora an 'implied license' to stream their spoken-word material by allowing the company to stream sound recordings of their shows without objection for years. Suzanne H. Segal, a former federal magistrate judge, noted that the comedians knew their routines were being streamed and received payments under existing record licenses. The report is not a final decision, and the comedians are challenging it, arguing that Segal misinterpreted case law.
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Why It's Important?
The report is a significant development in the ongoing legal dispute over how comedians are compensated by streaming services. As comedy gains popularity through social media, podcasts, and platforms like Netflix, the question of royalties becomes crucial. Comedians have been pushing for streaming services to pay publishing royalties for their sets, similar to music royalties. The outcome of this case could set a precedent for how spoken-word content is licensed and paid for, impacting the financial landscape for comedians and streaming platforms.
What's Next?
The report must be adopted by the judge to carry official weight, and the comedians are urging Judge Mark C. Scarsi to reject it. Pandora's attorneys will file their own brief supporting the report's adoption. The judge's final ruling could accept or reject parts of the report, influencing future licensing agreements and royalty payments for comedy content on streaming platforms.
