Is it possible? Free AND legal music online?

The Mercora IMRadio was reported here by Seattle PI - as a product review - to provide free yet legal music online. Its not a P2P and does not distribute copies of illegal music to downloaders but rather users just merely listens to the files already stored on its servers. As this is not a download, it does not technically fall foul of copyright infringement by the visitor to the site.

The question however, is does this absolve any legal liability on the part of the Mercora to stream music to listeners everywhere? While the report is silent on this point, I am of the view that who ever owns the server will face the same responsibility as any radio station. For every song played, it has to pay dues or royalty to the copyright owner. So, while it may be free for users and listeners - it's still not completely free - at least not to the owner of the server.

Product Review: Free -- and legal -- music online