Is it that or are they saying that because the original license was written before this new form of distribution existed, you don't have a license for it?

Either way, the music industry needs to die and then be reborn in several years when the existing players are all out of business.

It's not like the copyright provisions would be any better if they were written today. The only reason we have a public domain, time limited copyright, or even public library system today is because they're grandfathered in from a time before our current copyright maximalism.

You would kill off the current players only to find yourself trapped by an even worse set of overlords.