In a move that will massively affect companies like Napster, Rhapsody and MediaNet, Sony/ATV has directed The Harry Fox Agency to stop licensing its material for streaming and limited downloads.

This action comes in response to a motion put forth by DiMA (Digital Media Association) on January 7 to the Copyright Royalty Board. In said motion, DiMA argues that streams shouldn’t be considered as DPD (Digital Phonorecord Delivery).

There are two possible outcomes. If DiMA is given the ruling, they’ll have to acquire the standard performance licenses from the likes of ASCAP, BMI and SESAC rendering the need to obtain reproduction licenses obsolete under copyright law. However, if ruled against, the streams fall subject to publishing royalties.http://www.musicrow.com/section/AS000