There is also a problem with CloudID™ or other fingerprinting systems: they can determine the song/artist, but they can’t determine the album it was played from (assuming the sound recording is the same), which causes issues with compilations, etc. We’ve had issues with this, we have so many complilations in our library that have overlapping identical tracks. We may not have the original album/single release, only the compilation. Do we report the compilation or the original album it came from? The compilation may have only had a limited license to use the original recording.
Personally, I think this is a silly rule, and services should be able to use fingerprinting to ID songs played on them. Each song should have a caonoical ID and it won’t matter if it’s played from the original album, a re-issue on another label or a compilation.