Online music streaming company Pandora scored a big legal victory, but "this is only a blip on the radar," co-founder Tim Westergren said Tuesday.
"We're looking much further down the horizon," Westergren said on CNBC's "Squawk Alley."
On Monday, the U.S. Copyright Office said that a royalty payment rate agreement between Pandora and Merlin Network—a global rights agency for independent musicians—was a valid benchmark in determining what the legal rate should ultimately be for Internet radio play.
The Copyright Royalty Board, a three-judge panel working on setting a final rate royalties for Internet radio, is expected to make decide the issue in December.
Monday's announcement was considered favorable for Pandora—as the agreed to royalty rate of $0.0013 per stream could make the company profitable. The ruling sent Pandora's stock surging, rising as much as 14.7 percent before closing 5.74 percent higher at $20.83 per share. On Tuesday afternoon, its share price was down nearly 1 percent.