Makes sense to me.
The Court of Appeals for the 2nd Circuit has ruled that digital downloads are not public performances. The ruling nixes ASCAP's attempt to charge higher rates when consumers download and play songs from online providers. The court stated " Music is neither recited, rendered, nor played when a recording (electronic or otherwise) is simply delivered to a potential listener." The court remanded to the district court to determine a fair and reasonable license fee. ASCAP responded: "ASCAP and its songwriter, composer and music publisher members are, of course, disappointed in the Court's decision that there is no public performance in the transmission of certain musical downloads. We are studying the decision and will determine what further action is appropriate."
The decision will probably have an effect throughout the download world, and hopefully set a precedent for fair royalty rates for consumers and artists alike.
Here's a link to the story on Techdirt: http://www.techdirt.com/articles/20100928/11271611198/appeals-court-tells-ascap-a-download-is-not-a-performance.shtml.
Comments welcome, have a great day.