Music streaming service Grooveshark shuts down

May 1, 2015

Online music streaming service Grooveshark has admitted to “very serious mistakes,” and is shut down its operations as part of a settlement with major record labels, joining the ranks of several now-defunct peers sued over copyright infringement.

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In a message posted to its website on Thursday, Grooveshark said that “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.”

The settlement ends a four-year legal battle and came as Grooveshark’s parent company, Escape Media Group, was facing hundreds of millions of dollars in damages in a trial set to begin in federal court in Manhattan on May 4.

Nine record companies, including Arista Music, Sony Music Entertainment, UMG Recordings, and Warner Bros Records, sued Escape Media Group for infringement in 2011.

U.S. District Judge Thomas Griesa ruled last week that its infringement of nearly 5,000 recordings by artists such as Madonna, Jay-Z and Bob Marley was “willful” and made “in bad faith,” potentially putting Escape on the hook for more than $736 million in damages.

 

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