No idea about the legal situation. And to be frank I don't care. I have no economic incentive for my hobby. I consider it an art and a means of expression along the lines of singing and dancing. For all I care I am doing commercial musicians a favor for promoting their work, but really that's just an unintended side effect. SoundCloud was profiting of me giving away free content. Its people like me that enabled its business in the first place. So in the end its their loss, and they will fail because of the laws. I personally don't mourn the loss of SoundCloud as a viable publishing platform. I have many choices and it was never my primary platform to begin with (which is an independent pirate radio).

My point is that the laws don't stop the people doing the "infringing". We don't care. Its the businesses that could profit from the human need for creativity that are hurt by the absurd situation.