Posted by Mike McCready | May 1st, 2015 | No responses
The online streaming website Grooveshark lost its battle with the music industry on Thursday, shutting down immediately as part of a settlement agreement.
The closure follows a six-year legal battle between music labels and Escape Media, Grooveshark’s parent company.
Escape Media, parent company to music streaming service Grooveshark, has agreed to settle with Universal Music Group, Sony Music Entertainment and Warner Music Group and cease all operations, effectively “wiping its computer servers of all the record companies’ music, and surrendering ownership of its website, mobile apps and intellectual property,” according to the Recording Industry Association of America (RIAA).
An RIAA statement issued on Thursday (April 30) goes on to say that under terms of the settlement, “Grooveshark founders Josh Greenberg and Sam Tarantino admit to creating and operating an infringing music service.”
“This is an important victory for artists and the entire music industry. For too long, Grooveshark built its business without properly compensating the artists, songwriters and everyone else who makes great music possible. This settlement ends a major source of infringing activity,” said a statement by the RIAA, the industry trade group that represents the major labels.
In court papers, plaintiffs called Grooveshark the “linear descendant” of file-sharing services Grokster, LimeWire and Napster, all of which were shut down over copyright infringement.
A message on its homepage reads: “Dear 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 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. Without reservation.”
It added, “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.”
Mike McCready is an entrepreneur at the crossroads of music and technology. He pioneered the introduction of Hit Song Science into the music industry and followed up with Music Xray, the company he co-founded and serves as CEO. His companies have been the subject of case studies at Harvard Business School, IESE and he frequently guest speaks at many of the top business schools around the world. He helps the music industry identify high potential songs and talent and helps musicians get deals, get fans, & get better: http://musicxray.com