As a simple example: turntable allows uploads. What happens when I upload an MP3 from a band that isn't part of the MediaNet catalog? And at what point does streaming radio become a "digital locker"?
(source: http://www.mndigital.com/services/content-fulfillment.html)
Seems pretty compelling that as a customer of MediaNet, their service (aside from uploads) is totally legal, unless MediaNet is somehow not.
But they could simply turn off uploading should they be called out for that--I should have addressed that in my original comment. My guess is that much of the community wouldn't care if that feature was gone.
I'd say it's astonishing he doesn't know internet radio station have existed for ages. It took a little bit more know how before getting getting put on the web, but its always been there.
Or would it be a reason for founders to ask for more money, under the idea that they need a warchest of funds to fight expensive lawsuits?
On the other hand, being in a legal grey area could be seen as a barrier to entry for people who don't want a potential litigation nightmare hovering over their heads.