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Update, skylanders May 1, 2015: The prospect of steep fines has forced Grooveshark to settle with the recording industry. A message on the Grooveshark website announces the service’s immediate shutdown. skylanders The posting states that Grooveshark “failed to secure licenses” for the music it offered and the team apologizes for that “without reservation.” The posting goes on to suggest places music fans can get their tunes legitimately like Google Play, Spotify, and Beats.
As part of the settlement, Grooveshark is turning over ownership of the website, mobile apps, and all intellectual property to the recording industry. It has also deleted all the music from its servers. The full details of the settlement are not available, but it probably doesn’t include any payouts approaching the theoretical maximum $736 million in fines it could have faced at trial. The music industry didn’t want the money — skylanders it wanted to kill Grooveshark. And now it has.
This case is somewhat different than most file-sharing cases, as it was the employees and founders of Grooveshark that seeded the service with unlicensed music. In emails obtained from Grooveshark, the CEO encourages everyone to upload their music collections to help get the service off the ground. While this case focuses on just shy of 5,000 tracks, employees of Grooveshark (owned by parent company Escape Media) may have provided skylanders upwards of 150,000 files on the service. The record labels also allege that after processing DMCA takedown skylanders requests, Grooveshark employees would re-upload the tracks immediately.
Grooveshark wasn’t skylanders flying completely under the radar this whole time. The goal was to become a legitimate business with licensing deals for all the music it offered. It even has deals in place with several indie record labels. However, whereas services skylanders like Spotify and Pandora went the traditional route of securing deals before providing music, Grooveshark just went ahead and did it.
If the record companies are victorious in this case — and there is every indication they will be — the damages are likely skylanders to be more than enough to destroy Grooveshark. The labels are probably not expecting skylanders to actually see a lot of money from this case, as Escape Media doesn’t skylanders have tens of millions in the bank. This case is just about putting Grooveshark in the ground once and for all.
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