The skip limit is required  for lastfm radio to be in compliance with
the Digital Millennium Copyright Act.

In contrast with on-demand music services such as Rhapsody, companies
that stream music as radio channels do not need to get the agreement of
the copyright holders before playing their music.

They do have to pay royalties and abide by certain rules such as in any
3-hour period, they can broadcast:

* No more than 3 songs from one album;
no more than 2 played consecutively
* No more than 4 songs from a set/compilation;
no more than 3 played consecutively
* No more than 4 recorded songs by the same artist
etc

The DMCA act also prevents listeners of radio services from being able
to pause/resume within tracks, and mandates an hourly skip limit.

In the context of the internet, music services that introduce
"on-demand" features into their service are not considered to be radio
anymore, and must receive permission from copyright holders to play
their music. 

Thus every single track available in Rhapsody requires them to have a
deal in place with the owner of the sound recording (typically a label,
sometimes an artist/their company) and the owner of the publishing
rights (usually a publishing company, and mostly administered by The
Harry Fox Agency, an arm of the NMPA). Without those deals in place,
Rhapsody would be violating copyright law.

The only exception to obtaining such explicit permissions is radio
service, which can play any music without permission of music owners,
but then it must abide by rules stated above.


-- 
y360
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y360's Profile: http://forums.slimdevices.com/member.php?userid=10150
View this thread: http://forums.slimdevices.com/showthread.php?t=50296

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