Grooveshark’s model was it claimed based on users uploading music for others to use ie like You Tube. The record industry hated it but they weren’t confident of taking them to court and many of the larger companies entered in to licensing deals.Â
However it was discovered that Grooveshark was also uploading content and therefore the individiual own work defence was lost. It was now straightforward copyright infringement.
A jury awarded $150,000 for each of the nearly 5000 tracks listed in the litigation. A deal was done but to the joy of the music industry which hated the model Grooveshark was forced off the Internet.
The founders Josh Greenberg and Sam Tarantino were also forced to apologise:-
ÂDear music fans,
Today we are shutting down Grooveshark.
We started out nearly ten years ago with the goal of helping fans share and discover music. But despite [the] best of intentions, we made very serious mistakes. We failed to secure licenses from rights holders for the vast amount of music on the service.
That was wrong. We apologize.
As part of a settlement agreement with the major record companies, we have agreed to cease operations immediately, wipe clean all of the record companiesÂ copyrighted works and hand over ownership of this website, our mobile apps and intellectual property, including our patents and copyrights.
At that time of our launch, few music services provided the experience we wanted to offer Â Âand think you deserve. Fortunately, thatÂs no longer the case. There are now hundreds of fan friendly, affordable services available for you to choose from, including Spotify, Deezer, Google Play, Beats Music, Rhapsody and Rdio, among many others.
If you love music and respect the artists, songwriters and everyone else who makes great music possible, use a licensed service that compensates artists and other rights holders. You can find out more about the many great services available where you live here: whymusicmatters.com/find-music.
It has been a privilege getting to know so many of you and enjoying great music together. Thank you for being such passionate fans.
Yours in music,
Your friends at Grooveshark
April 30, 2015″