In using Pandora, a user cannot rip songs they are listening to onto their computers, cannot share these songs over the internet, or any other form of illegal downloading/sharing. Users are under a long list of restrictions which include, but are not limited to agreeing not to: “copy, store, edit, change, prepare any derivative work of or alter in any way any of the tracks streamed through the Pandora Services.” The music Pandora provides and offers its users is simply to help users find other artists/types of music through listening to music “chosen” for them based on their likes/dislikes. Pandora’s copyright agreement states:
"As between you and Pandora, you acknowledge that Pandora owns or has a license to all title and copyrights in and to the Pandora Services. All title and intellectual property rights in and to the licensed content in the Pandora Services is the property of the respective content owner and may be protected by applicable copyright or other intellectual property laws and treaties and subject to use restrictions under such laws or treaties."
Although Pandora limits its capabilities in accordance with copyright law, they have been given harsher restrictions, such as forcing users to only be able to skip five songs on a particular station within an hour, as well as having to pay higher royalties for songs than regular AM/FM radio and even satellite radio. In order to keep Pandora alive, they have recently (July 2009) had to start charging Pandora users who listen for forty or more hours in a month a fee of .99 to listen unlimitedly for the rest of the month. Pandora founder, Tim Westergren, states, “We hate the idea of limiting anyone's listening, but we have no choice but to react the economic realities of the new rates.” Pandora has to limit itself and its mission by conforming to the regulations placed on them just in order to survive.