In United States copyright law, fair use is a doctrine that permits > use of copyrighted material without acquiring permission from the rights holders. Examples of fair use include commentary, search engines, criticism, news reporting, research, teaching, library archiving and scholarship. It provides for the legal, unlicensed citation or incorporation of copyrighted material in another author's work under a four-factor balancing test.-- They will need to overcome the spotify issue, presumably [1]
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[1] The underlying issue is the model appears to be leveraging in-copyright source material. The rights holders will argue its a for-profit platform for re-publication, rather than a permitted use in a limited capacity. That is the issue at hand for the market and/or courts to decide.
viz:
17 U.S.C. § 107
Notwithstanding the provisions of sections 17 U.S.C. § 106 and 17 U.S.C. § 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include:
1 the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;
2 the nature of the copyrighted work;
3 the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
4 the effect of the use upon the potential market for or value of the copyrighted work.**
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However, there is reason to think a deal could be structured that benefits all parties. The business has potential to add real value, as it is a new channel for adding new life into legacy content libraries (for example).