Music startup Project Playlist is now being sued by just two major labels – WMG and UMG – after EMI pulled out of the lawsuit and signed a licensing deal with the playlisting site. It’s the second to do so, after Sony Music. “Project Playlist is becoming a fan favourite,” says EMI’s president of music services Ronn Were. “Our artists also know that word-of-mouth among friends is a powerful part of music discovery”.There’s no news on the details – specifically the licensing terms, and whether EMI has taken an equity stake in Project Playlist. However, the site’s applications are still barred from Facebook and MySpace due to the ongoing lawsuit with the other majors – hampering Project Playlist’s growth. Although given todays rumours about Imeem, that at least means its cash will be draining less quickly.