Hi, Just want to be sure of something. I'm thinking of adding a new feature to my social networking site where the users can upload MP3's straight from their computer to be streamed and played on their profile, but the MP3's won't be available for download, people will just be able to listen to it. Is this legal?
it's certainly not legal. you could try to hide behind a TOS, but even then you'd have to face the RIAA at some point. even if you were in the right, you wouldn't have the money to defend yourself (I'm assuming...)
Although legally you're not the direct infringer, but people who upload copyrighted materials; prepare yourself for the battle with record labels for supplying infrastructure for illegal activity.
Im currently doing this also on my social networking site. Originally I had it setup so only bands could upload their music, but it seemed like regular users were signing up as bands, just so they could upload music on their profile. So I opened it up to everyone, with a notice stating that we don't moderate uploads and the user is responsible for complying with all copyrights. I dont know how safe this is legally, but its impossible for me to go through every song that's uploaded and know if it violates a copyright.