A federal judge has declined competing requests to resolve the Mechanical Licensing Collective’s royalty lawsuit against Pandora without a trial, keeping alive a case that could help define when Internet radio becomes interactive streaming.
The dispute centers on Pandora Free, the company’s advertising-supported personalized radio service. The Mechanical Licensing Collective argues that features including temporary on-demand listening, replays, skips and personalization make the service interactive under federal copyright law, triggering broader mechanical-royalty obligations.
Pandora rejects that interpretation. It says ordinary listening on Pandora Free remains noninteractive Internet radio. Free listeners can temporarily unlock Premium Access after watching a video advertisement, but Pandora maintains those sessions are separate interactive uses for which it already reports and pays mechanical royalties.
The court did not decide who is right
Both sides asked U.S. District Judge Eli Richardson to grant summary judgment. Reports published September 30 said Richardson declined to resolve the contested issues from the extensive written record and determined that the case should proceed toward trial. A trial date has not been announced.
The decision does not establish that Pandora owes additional royalties, and it does not change the licensing rules for ordinary noninteractive webcasters. The Mechanical Licensing Collective’s underpayment claims and Pandora’s defenses remain disputed and have not been adjudicated.
Why Internet Radio operators should watch
The eventual outcome could influence how hybrid audio products are classified. A service may begin as programmed Internet radio but add search, replay, extensive skipping or temporary on-demand listening. The case asks whether those interactive features can change the licensing treatment of the larger free service or remain separately licensed functions.
Independent stations operating conventional linear streams are not the direct target of the lawsuit. Operators developing personalized or listener-controlled features, however, should follow the case closely and obtain licensing advice before assuming that a radio-style label determines the service’s legal classification.
Sources: Digital Music News, September 30, 2026; Music Business Worldwide case overview; Mechanical Licensing Collective filing; Pandora filing.
Featured photo by Fath on Unsplash.