Facebook has joined MySpace in dropping Project Playlist‘s widget, which lets users search for tracks and create digital mixes to share. This comes on the heels of an announcement from Project Playlist of an agreement with Sony BMG to allow the label’s artists to be featured in the program. Three other majors are suing saying that Project Playlist distributes copyrighted material and induces people to upload more material, infringing on copyright protection.

As MediaPost’s Daily Online Examiner put it, “Meanwhile, it’s unclear how anyone benefits when three of the four major labels decide to shun companies like Project Playlist that have a huge fan base and that clearly want to find a way to compensate the industry.”

‘zactly.