As far as I know, those microphones work by sending pulses down to microphone line. The original ones with just a play/pause button just shorted the microphone and ground lines, so I guess newer ones with full controls use the microphone bias voltage to run a small circuit which sends coded messages the same way.
I did used to have a phone that used a hard to remember series of manual codes to control media. I think it was short press=play/pause, long press=next track, double click=previous track. But that had no fancy electronics, just the old single button control, since it was the user entering the codes, not an electronic circuit.
Someone with a set of those headphones could record the signals and reverse engineer them, but people were free to do that with the Pandora, and as far as I know, nobody bothered. I'm not sure how common these headphones are - all the third party headphones I've ever bought have a single button at most.