16 December 2011

There Is Blood In The Music Streaming Waters And It Is From Grooveshark

Grooveshark Logo Icon


If you read about this news of Grooveshark now being in the brink of facing a big lawsuit from the top record companies and have been using Grooveshark just casually or without much care about its history. You may be left wondering why is this lawsuit happening just now. Let me explain:

Grooveshark has now been around for over 5 years. Shocking, i know. And they have based their startup in being lawsuit fearless by using a very clever technique where they welcomed individual lawsuits from content owners. Because they can be dragged down for years and because since they operate in very well thought self-audited process abiding by the DMCA. They know they got a chance to win. But not only that. They go to trail with a counter offense to undermine the lawsuits by saying:

"Hey, we would love to do a licensing rights deal. That way we can all make money. You know, like we already had been asking you.."

By doing that. They increased their chances of making the cases go away quicker. Something that had been working very well for them so far. So much it was working for them that they got a deal worked out with EMI. Deal that had saved them from Legal Heat and Danger for a good while.

Unfortunately for Grooveshark. EMI is now owned by Universal. Making Universal the biggest Top Record Label. One that happens to be quite friendly and cozy to the RIAA’s line of thinking..

Don't know the details of the Grooveshark-EMI deal. But i assume that it can be broken off if EMI was acquired. And because of that, Universal is now aiming to destroy Grooveshark. Something they had been wanting to do for years now.

2012 is now looking uncertain for Grooveshark. As this is not like any other lawsuit they had to face. This is a focused mega lawsuit. One where they got all odds against in. Wishing Grooveshark the best. And hope they bring all their smarts and cleverness into this fight because they just became a David having to fight 3 Goliaths in one go.


Source The Verge




diva42 said...

Yeah UMG is responsible for blocking and pulling down most music video's made from fans on You Tube they are quite greedy group. Wishing the best for Grooveshark hopefully it can be worked out.

davidbee said...

I am wondering if the timing of this UMG lawsuit has anything to do with the looming battle over SOPA / PIPA bills this month.
A cynic could assume that this case will be thrown into the pro SOPA / PIPA camps as an example of ' why' these horrible bills are needed.
Good luck GrooveShark, but i fear there are other reasons why this is happening right now and its not only about your business model.


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