Grooveshark Shuts Down Operations
Grooveshark is ceasing operations, after its parent company Escape Media agreed to a legal settlement with Universal Music Group, Sony Music Entertainment, and Warner Music Group. The settlement includes the termination of all operations, wiping its computer servers of all the record labels’ music, and surrendering ownership of its website, mobile apps, and intellectual property.
Grooveshark founders Josh Greenberg and Sam Tarantino acknowledged creating and operating an infringing music service. Escape Media has agreed to financial penalties if the terms of the settlement are not followed.
“Despite the best of intentions, we made very serious mistakes,” Grooveshark said in a statement on its website. “We failed to secure licenses from rights holders for the vast amount of music on our service. That was wrong. We apologize.”
The statement also named several affordable alternatives, including Spotify, Deezer, Google Play, Beats Music, Rhapsody, and Rdio.
In a statement, the Recording Industry Association of America (RIAA) said, “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.”
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